medicaid planning: protecting your assets and your eligibility

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

Protecting Your Assets and Your Eligibility

MEDICAID PLANNING


WHY COMPREHENSIVE ESTATE PLANNING IS NECESSARY

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

forgotten.


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


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

your family, and your assets are protected.


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


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


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

include Medicaid planning in your comprehensive estate plan now.


WHAT IS MEDICAID?

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

disabled and elderly.


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

to their Medicaid funding.


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.


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.


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:


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


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


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


CAN MEDICAID HELP?

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

for many seniors.


Here’s why:


The problem for most senior applicant’s 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.


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.


CAN’T I JUST TRANSFER ASSETS TO MY CHILDREN BEFORE I APPLY?

Transferring assets right before applying for Medicaid no longer works.


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.


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.


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.


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.


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.


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.


Last minute Medicaid planning might still be able to help you

though.


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.


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/


http://www.cheryldavid.com/

medicaid planning: protecting your assets and your eligibility

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