medicaid planning: protecting your assets and your eligibility

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  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Protecting Your Assets and Your Eligibility

    MEDICAID PLANNING

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    WHY COMPREHENSIVE ESTATE PLANNING IS NECESSARY

    Estate planning is something that should be ongoing, not something that is done once and

    forgotten.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    As you grow, so does your family and your estate.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Consequently, your estate plan should also grow to ensure that you,

    your family, and your assets are protected.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    One threat to those assets, particularly during your retirement years, is the cost of long-term care.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Medicaid can help; however, you must first qualify for benefits.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Once again, your hard-earned assets may be in jeopardy unless you

    include Medicaid planning in your comprehensive estate plan now.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    WHAT IS MEDICAID?

    Medicaid is a health insurance program for low income individual and families as well as for the

    disabled and elderly.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Medicaid is primarily funded by the U.S. federal government; however, the individual states may also add

    to their Medicaid funding.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Medicaid is administered by the individual states which causes the

    eligibility criteria, as well as available benefits, to vary somewhat

    from one state to another.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    WILL YOU NEED LONG-TERM CARE?

    The longer you live, the better the odds are that you will need long-term care at some point.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    In fact, the odds of needing long-term care at any time in your life are

    likely higher than you realized. Consider the following facts and

    figures:

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    During your working years you stand a 1 in 5 chance of suffering an injury or illness that leads to the

    need for long-term care.

    By age 65, you stand a 1 in 2 chance of needing long-term care before you die.

    At age 85 those odds increase to 3 in 4

    The average yearly cost of long-term care is over $80,000 nationwide

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    In North Carolina, the average yearly cost for long-term care is just over $90,000 as of 2016

    Looking 20 years into the future, that cost is projected to run about $160,000 a year

    The average stay in a long-term care facility is 2.5 years

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Medicare does not cover long-term care costs nor will most private health insurance policies.

    Medicaid does cover long-term care costs

    Almost half of all seniors count on Medicaid benefits at some point

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    CAN MEDICAID HELP?

    Although Medicaid does cover long-term care costs, qualifying for benefits can be challenging

    for many seniors.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Heres why:

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    The problem for most senior applicants is that Medicaid uses income and asset limits when

    determining eligibility.

    The asset, or countable resources limit is as low as $2,000 for an individual in many states.

    Countable resources refers to assets that count toward your eligibility limit.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Some assets are exempt from your countable resources, such as a home, a vehicle, and a burial

    plot.

    If the value of your assets exceeds the program limit you will be required to rely on those assets before

    Medicaid will start covering your expenses.

    Your hard-earned assets could be depleted within a matter of months.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    CANT I JUST TRANSFER ASSETS TO MY CHILDREN BEFORE I APPLY?

    Transferring assets right before applying for Medicaid no longer works.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Medicaid now uses a five year look-back rule.

    Allows Medicaid to review your finances for the 5-year period prior to applying for benefits.

    Asset transfers during that time frame may be ignored

    The value of assets transferred will be imputed back into your estate for the purpose of determining

    eligibility for Medicaid.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    HOW CAN MEDICAID PLANNING HELP?

    The key to protecting your hard-earned assets and ensuring that you will qualify for Medicaid benefits should you need them in the

    future is to incorporate Medicaid planning into your comprehensive estate plan now, long before the need to qualify for

    Medicaid actually arises.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    WHAT IS MEDICAID PLANNING?

    Medicaid planning looks ahead to the likelihood that you, and/or your spouse, will need to qualify

    for Medicaid in the future.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Legal strategies are incorporated into your estate plan to protect your

    assets and ensure that you will qualify for Medicaid benefits should

    you need them in the future.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    A Medicaid trust, for example, might be created to remove assets from your estate and protect them, thereby reducing the value of your countable resources and allowing

    you to qualify for benefits.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    WHAT ABOUT LAST MINUTE MEDICAID PLANNING?

    Ideally you should incorporate Medicaid planning into your estate plan at least five years prior to the need to

    qualify for benefits to remain safely outside of the five-year look-back rule.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    Last minute Medicaid planning might still be able to help you

    though.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    An experienced estate planning attorney might be able to use some

    Medicaid planning strategies to help you even if you failed to start

    planning early on.

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    If you have questions regarding Medicaid planning, or any other

    estate planning matters, contact us online or call us at (336) 547-9999

    for a free consultation

    http://www.cheryldavid.com/contact-us/http://www.cheryldavid.com/contact-us/

  • 528 College Road Greensboro, NC 27410 Phone: (336) 547-9999

    http://www.cheryldavid.com/

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