Elder Law/Medicaid Planning
Today, we are living longer and longer, and there is a very real possibility that at some point in your life you will need long-term nursing home care. The problem now is how to pay for it. The costs of nursing home care range from $6,000 to $8,000 per month. The answer to this dilemma is qualifying for Medicaid and ensuring that after you pass away, your assets and the family home are protected from the Nursing Home and Medicaid Estate recovery for the benefits you received. Simply put, if you do not plan properly, every penny of your assets will have to be spent on your care leaving no inheritance to your family.
As Medicaid Planning Attorneys, we are frequently asked questions about how families can protect their assets with proper planning, and the answers to those questions are not always what you would expect.
1. Since I am already receiving Medicare, I do not need to worry about trying to qualify for Medicaid.
False: Medicare will pay for the full cost of the first twenty days in a nursing home facility, a portion of the costs for days 21-100, and zero for nursing home costs after 100 days. If you qualify for Medicaid, the government will pay for 100% of nursing home care, so you will not have to use your assets to do so.
2. To qualify for Medicaid, only my monthly income will be considered.
False: Medicaid has three types of qualifications you must meet:
- Medical qualifications: you must need assistance in performing a certain number of activities of daily living;
- Income qualifications: you must have less than $2,199 of income per month (if your monthly income exceeds the maximum, with proper planning you can still qualify for Medicaid via the use of Federally authorized trusts);
- Asset qualifications: a single person cannot have more than $2,000 in countable assets; a married couple has a different asset maximum which is dependent on the couples’ standard of living. With proper planning, often the vast majority of assets can be protected for the surviving spouse and/or children.
3. To avoid paying the nursing home, I can just give away my assets to my children?
False: If you transfer property for less than its fair market value or give away your assets, you will be ineligible for Medicaid for a period of time depending on the size of the gift. There is no limit to how long this penalty period can be. Essentially, Medicaid will divide the amount of the gift by $199.56, and the answer will be the number of days you are disqualified from Medicaid. With proper planning techniques, assets can be transferred without any penalty.
4. If I own my home, I will not qualify for Medicaid.
False: Medicaid does not consider your primary residence as an asset for Medicaid qualification. However, upon your death, the state can force your home to be sold to repay Medicaid for the amount it paid for your care during your life. With proper planning, the home can nearly always be saved.
What Is Medicaid?
What Is the Difference between Medicare and Medicaid?
Medicaid Qualifications
Medicaid Planning Trusts
Protecting the Home
Protecting Other Assets
Need Help Filing for Medicaid?
Power of Attorney
Estate Recovery – What Can They Get After I Pass?