Long-term care costs are a significant concern for many seniors and their families. Fortunately, with a comprehensive long-term care and asset protection plan, it's possible to safeguard your home and other assets, ensuring you can cover supplemental needs and protect a well spouse. The National Law Review article, "Protecting and Preserving Property When Paying for Long-Term Care," provides essential insights on this topic.
Understanding Exempt Assets
Your primary residence remains an exempt asset if you plan to return home. This means Medicaid does not count it when assessing your eligibility. Additionally, the property is exempt if your spouse, minor child, or disabled child resides in the home.
If you have a child who has lived with you for at least two years and provided care that allowed you to stay at home instead of moving to a nursing home, the property can be transferred to this “caregiver child.” Another permissible transfer is to a disabled child, which Medicaid allows without imposing a penalty period. It's crucial to consult with your estate planning attorney to ensure these transfers don't interfere with any Special Needs planning or make the child ineligible for other benefits.
Medicaid's Five-Year Look-Back Period
Medicaid has a five-year look-back period, during which any transfers of property can render you ineligible for benefits. Many people mistakenly believe Medicaid won’t detect asset transfers, but in today's connected world, such actions are easily traced.
Medicaid Asset Protection Trust
A Medicaid Asset Protection Trust is a common tool used to protect assets if established five years before applying for benefits. By retitling the family home, investment accounts, and other assets into the trust, they become protected and exempt from Medicaid. This arrangement allows the well spouse to continue living in their home and use the assets saved for retirement or future inheritance.
Immediate Planning Options
If the need for Medicaid benefits arises unexpectedly and no prior planning has been done, there are still ways to protect assets. Using Medicaid Compliant Annuities and creating supplemental needs trusts can help shield some home sale proceeds. An estate planning attorney can evaluate your situation and recommend the best options tailored to your needs.
Navigating Medicaid Appeals with Vick Law, P.C.
Occasionally, incorrect information about a Medicaid recipient can lead to termination of eligibility. For instance, the FSSA recently admitted to a "computer glitch" that erroneously extended transfer penalty periods. In such cases, it is necessary to file a Medicaid appeal. The Vick Law Medicaid+ Program assists clients with these appeals, providing guidance through the process. Our program offers ongoing support and allows clients and their representatives to ask questions as they arise, ensuring you have the help you need to protect your assets and secure your Medicaid benefits.
Take the Next Step
Planning for long-term care is essential for protecting your assets and ensuring peace of mind. Contact Vick Law, P.C. today to learn more about our Medicaid+ Program and how we can help you navigate the complexities of Medicaid appeals and asset protection.
Reference: The National Law Review (June 20, 2024) “Protecting and Preserving Property When Paying for Long-Term Care”
