CELA key terms

The process of reducing countable assets by paying for care or other permitted expenses until a person falls below the asset limit for Medicaid long-term care eligibility. Excess income may instead be placed in a qualifying trust.

Resources Medicaid counts when deciding eligibility, such as cash, bank accounts, and non-exempt real property. The applicant's home, one vehicle, and certain personal belongings are generally excluded or treated separately.

The share of a married couple's countable resources that the spouse living at home may keep when the other spouse enters long-term care. It is set within federal minimum and maximum limits, adjusted annually.

A qualified income trust used in states with a hard income cap. Income above the cap is deposited into the trust and paid to the nursing facility, so the beneficiary stays within the Medicaid income limit.

A state program that seeks repayment from the estate of a deceased Medicaid recipient for long-term care benefits paid. Federal law limits recovery to certain benefits and protects a surviving spouse and other heirs in defined circumstances.

The review window, generally five years, in which a state examines transfers of assets for less than fair value before a Medicaid long-term care application. Gifts during this period may trigger a penalty period of ineligibility.

A span of time during which a Medicaid applicant is ineligible for long-term care benefits because of an uncompensated transfer. Its length is calculated by dividing the transferred value by the state's average daily private-pay rate.

The practice of arranging a client's income, assets, and transfers so that long-term care costs are covered while preserving resources for a spouse or heirs, within the rules on transfers, trusts, and exempt property.

A written authorization letting an agent act for a principal on financial matters. It remains effective if the principal becomes incapacitated only if the document says so or state law provides it.

A document naming someone to make medical decisions for a person who cannot decide for themselves. It usually takes effect on a physician's determination of incapacity and may include instructions about treatments and end-of-life care.

A general label for written instructions about future medical care, including a living will describing preferred treatments and a health care proxy naming a decision maker. State forms and witnessing rules vary.

A court-supervised arrangement in which a person or agency is appointed to make personal or financial decisions for an adult found incapacitated. It is often the last resort after less restrictive alternatives are considered.

A court appointment focused on managing another adult's property and finances, used in some states instead of or alongside guardianship. Terminology and the scope of the court's oversight differ by jurisdiction.

An arrangement in which a person with a disability keeps legal authority but chooses trusted supporters to help gather information and understand choices. It is promoted as a less restrictive alternative to guardianship.

The improper use of an older adult's money or property by a family member, caregiver, or stranger through deception, undue influence, or misuse of authority. Signs include unusual transfers, missing funds, and isolation from others.

Excessive pressure that overcomes a person's free will and causes them to act against their own wishes, often in wills or transfers. Courts look at the relationship, the person's vulnerability, and the fairness of the result.

The mental ability to make a valid will, requiring that the testator understand the nature of the act, the property owned, and the natural objects of their bounty. It is judged at the time the will is signed.

Arranging how a person's property will be managed and distributed during life and after death, using wills, trusts, beneficiary designations, and related documents. For older clients it often coordinates with incapacity planning and public benefits.

A tax-favored savings account for a person with a qualifying disability beginning before age 26. Contributions are limited annually, and funds used for qualified disability expenses do not count against most public benefit limits.

A federal needs-based program paying monthly benefits to people who are aged, blind, or disabled and have limited income and resources. Most recipients also qualify for Medicaid in their state.

A federal insurance program paying monthly benefits to workers who become disabled and to certain family members, based on the worker's earnings record. Eligibility does not depend on financial need, and Medicare follows after a waiting period.

The earnings test used by Social Security to decide whether a person with a disability is working at a level that would end eligibility for disability benefits. The monthly amount is adjusted each year.

A trust holding assets for a person with a disability while preserving eligibility for needs-based benefits. The trustee may pay for supplemental items but cannot distribute cash or basic support that benefits programs already cover.

Another name for a third-party special needs trust, funded with someone else's money rather than the beneficiary's own assets. Because it is not the beneficiary's property, it usually avoids the payback rules that apply to self-settled trusts.

A trust run by a nonprofit organization that holds sub-accounts for many people with disabilities. It is often used for self-settled funds, and remaining funds may be kept by the charity or used to repay Medicaid, depending on the trust type.

A clause required in certain self-settled special needs trusts stating that, when the beneficiary dies, remaining trust assets reimburse the state for Medicaid benefits paid before any other distribution.

A written plan developed by a school team and the parents that sets out a student's special education services, goals, and placement under federal disability education law. It must be reviewed at least annually.

The federal guarantee that eligible students with disabilities receive special education and related services at public expense, tailored to their needs and provided in the least restrictive setting that works.

The legal requirement that a student with a disability be educated with peers without disabilities to the maximum extent appropriate, with removal to a separate setting only when supports cannot make inclusion successful.

The part of special education planning that prepares a student for life after school, covering work, further education, and independent living. Federal law requires it to begin by a set age, commonly sixteen.

A process that builds a service plan around the individual's own goals, preferences, and strengths rather than around available programs. It is required in many publicly funded disability service systems.

A Medicaid option that funds care in a person's home or community instead of an institution, such as personal care and supported employment. Waivers have enrollment limits and state-specific eligibility rules.

A federal rental subsidy that pays part of the rent for low-income households, including many people with disabilities. The tenant pays a share of income, and the voucher generally follows the person to a new unit.

A person or organization appointed by Social Security to receive and manage benefits for someone unable to handle them. The payee must use the funds for the beneficiary's needs and keep records.

A legal finding that a person cannot make or communicate decisions about personal care or finances. It is the threshold for appointing a guardian and is decided by a court, not by a diagnosis alone.

A person named in a trust document who oversees the trustee and may remove or replace them, amend terms, or approve distributions. The role adds flexibility to long-term trusts for a beneficiary with a disability.