Strategic Medicaid Planning
As you age, you need to schedule strategic Medicaid planning with an elder law attorney. The Medicaid program in the United States is designed to offer healthcare coverage to individuals and families who have low income. Although, due to the exorbitant expenses related to long-term care, many wealthier people are opting for Medicaid planning instead of exhausting their assets to earn benefits. With adequate financial restructuring and strategic planning, individuals can fulfill the eligibility criteria while also increasing their chances of being accepted into the Medicaid program.
Common Reasons to Engage in Medicaid Planning
Medicaid planning provides several compelling reasons for participation, including:
· Long-term Care Costs
Medicaid can help cover expensive long-term care costs. Medicaid planning can help prepare for the possibility that you or a loved one will need to qualify for benefits to offset costs for long-term care.
· Protecting Assets
Medicaid has strict eligibility requirements, including limits on the number of assets you possess. Medicaid planning helps restructure these assets to ensure you qualify for health benefits when needed.
· Estate Planning
Medicaid planning is often a key component of estate planning. By arranging your finances in a way that allows you to qualify for Medicaid, you ensure you have the resources you need to cover long-term health care costs while protecting assets for your heirs.
How Prevalent is the Need for Long-term Care?
The United States is home to over 65,600 monitored long-term care facilities that collectively cater to over 8.3 million individuals residing in nursing homes, assisted living facilities, and other similar establishments, as reported by the National Center for Health Statistics.
The need for long-term care is on the rise, with a significant increase in the number of individuals requiring such care. As per the records of the US Department of Health and Human Services' Administration on Aging (AoA), more than 70% of individuals aged 65 and above would need long-term care. This percentage continues to increase with age.
Long-term care costs in America are quite high, with citizens staying an average of 3.2 years at an expense of $475.1 billion per year. It is anticipated that these figures will rise in the future. Given that approximately 42 percent of these expenses are covered by Medicaid benefits, it is critical to engage in Medicaid planning for money management in retirement and legacy planning.
How to Begin Medicaid Planning
An elder law attorney within your state is best suited to guide you in taking lawful and moral measures to secure your assets while obtaining Medicaid benefits. It’s essential to abide by the rules and regulations of your state, as Medicaid is a program established through federal and state partnership. Prior to seeking the services of an elder law attorney, you can collect some data to aid them in devising your Medicaid planning tactics:
1. Becoming familiar with your state laws and eligibility requirements regarding income and assets can streamline your consultation. Your attorney will answer all of your questions.
2. Compiling a list of all assets, including savings, investments, property, insurance policies, and retirement accounts, can help your attorney determine which assets are exempt from Medicaid’s asset limits.
3. Gathering information regarding all income sources will help your attorney figure out how much you can earn while still qualifying for benefits.
4. Researching long-term care insurance policies helps decide whether you can afford to add it to your Medicaid strategy.
How an Elder Law Attorney can Help
Once you have acquired all crucial financial details and estate planning records, it is time to schedule a consultation with your elder law or Medicaid planning lawyer.
They will review your financial situation to determine what income and assets count toward Medicaid eligibility and identify any potential issues or challenges. Knowing your unique situation, your attorney can begin developing a custom strategy to comply with Medicaid rules and regulations.
Your Medicaid strategy must complement your estate planning documents and goals. An elder law attorney may amend existing will or trust documents to maximize Medicaid benefits and ensure a healthy spouse living at home has the financial resources they need.
An elder law attorney may recommend transferring assets into a Medicaid asset protection trust. The Medicaid lookback rules make it necessary to start this process at least five years before the need for care. When it's time to apply for benefits, your elder law attorney helps prepare and submit your Medicaid application.
You or a Loved One are Likely to Need Long-Term Care
Medicaid planning ensures you can afford the care you need. Because Medicaid eligibility is as important as it is complicated, an elder law attorney can ensure you qualify and avoid simple mistakes that result in a denial or delay of benefits. When planning for potential long-term care, the sooner you begin, the more options you have.
Need Help?
If you need help with your medicaid planning, contact us today.
