Five Things All Elders Should Know About Medicaid Planning
Many elders have created an estate plan that dictates what will happen to their property after their death. However, it is just as important to plan for what may happen in your lifetime. If you only draft a will, for example, it can provide financial help for your family, but it will not help you during your lifetime.
Should you need care in a nursing home, it is important to start Medicaid planning now. By taking the time to plan for Medicaid, you do not have to worry about your family’s inheritance being used to pay for long-term care. Below, our Pasco County elder law attorney outlines five things all elders should know about Medicaid planning.
There is a Good Chance You Will Need Long-Term Care
In a study, the RAND Corporation found that more than half Americans aged between 57 and 61 will need nursing home care for at least one night. The study also found that the average stay in a nursing home is 272 and ten percent of participants averaged more than 1,000 nights. The average cost of a private or semi-private room in these facilities is between $3,500 to $10,000. If you have to spend time in a nursing home in the future, it will be very costly but Medicaid planning can make it easier to pay for.
Understanding what Medicaid Is
Medicaid is a federal financial aid program that can provide critical health insurance for people of all ages. This critical health insurance can help pay for bed stays, nursing care, and more for elderly individuals. Applying for Medicaid is complicated, though, and you will have to meet certain requirements.
How to Protect Assets
Individuals sometimes find that they have too high of an income or assets to apply for Medicaid, but they do not have enough to pay for nursing home care. Medicaid planning protects your assets from being used to pay for long-term care, while also making sure you are eligible for government assistance.
You Need to Start Early
Medicaid has a five-year ‘look back’ period. This means Medicaid can look back at the previous five years and consider any assets you transferred or gifted when determining if you are eligible for assistance. To ensure as few assets and resources as possible are considered, you need to start planning for Medicaid now. For example, if you want to gift your children an early inheritance to shield the assets from being considered for Medicaid, you should do it now.
Our Elder Law Attorney in Pasco County Can Help with Medicaid Planning
Medicaid planning is very important for American adults of all ages, but it always has the potential to become complex. At The Law Office of Laurie R. Chane, our Pasco County elder law attorney can help you properly plan for Medicaid so you have the coverage you need in the event that you ever need long-term care. Call us now at 352-567-0055 to request a consultation with our expressed attorney and to get more information.