When most people think of Medicaid planning, they think of a program that provides health insurance to low-income individuals. The fact is that Medicaid offers several services, and in addition to providing coverage to people with limited resources, Medicaid covers both nursing home care and home-based community health services. The cost of assisted care, whether in an institutional setting or via a home healthcare worker, is extremely high, and Medicaid is the best way to ensure that you are able to afford these services. The process of applying for nursing home or community Medicaid, though, is quite complicated and can be difficult to navigate. Working with an experienced estate planning attorney on a strategy of future planning is the best way to protect yourself and your family.
How Do Nursing Home and Community Medicaid Planning Work?
Nursing home and community Medicaid are need-based programs, which means that there is both an asset and an income limit when it comes to qualifying for the services. When you put in your application, Medicaid will look at your resources and make sure that you qualify. In the state of Ohio, the monthly income limit is $2,901 and the asset limit is $2,000, which is more if you are married and both spouses are applying. Not all assets are subject to the asset limit, but a good portion of them are, including cash, investments, bank accounts, and real estate in which you don’t reside. In addition, both forms of Medicaid are subject to a five-year look back period. This means that, when you apply, Medicaid will review all financial transactions you made over the previous 60 months to be sure that you didn’t simply gift away your assets to a loved one in order to get under the limit. Any improper transfer you made in the last five years—defined as giving away assets for less than the market value—will result in a penalty and could prevent you from qualifying for Medicaid for a period of time.
Asset Protection
If you’re subject to a stringent asset limit, and you can’t simply give away your assets to your loved ones, how do you qualify for Medicaid without losing all your possessions? Luckily, there are several asset protection strategies that you can employ in order to ensure your eligibility, such as a Medicaid Asset Protection Trust (MAPT). In this arrangement, you transfer a significant portion of your assets to the trust, while still having access to interest and dividends earned by the trust. Whatever strategy you employ, future planning done in conjunction with an experienced estate planning attorney can have you well ahead of the curve when it comes to protecting yourself for the future. The time to begin Medicaid planning is now.
Contact the Experienced Estate Planning Attorneys at Deliberato Law Center
At Deliberato Law Center, we have many years of experience helping our clients protect their assets and qualify for the care that they need and deserve. Give us a call today at 216-341-3413 or fill out the form below and start securing your future today.
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