Protecting Other Assets

Medicaid Planning Attorneys Representing Clients in Kentucky
Each year, Americans shell out approximately $70,000 per person for nursing home costs. With the average person staying in a nursing home for 2.5 years, the price for the stay alone reaches a whopping $170,000. Medicaid, a state-run and state-funded program designed to cut healthcare costs for individuals in nursing homes, can help offset the cost of nursing home stays. However, due to limited funding, Medicaid has strict enrollment eligibility criteria. One such criterion is the income threshold. If your monthly income is over a certain amount, specified by the state of Kentucky, you will not be eligible for Medicaid.

In order to reduce the monthly income calculation, however, you can divest some of your assets. In doing so, you can preserve and protect these assets while also maintaining your eligibility for Medicaid. In addition, upon death, your assets will become part of your estate. Kentucky may try to recover some of your nursing home stay expenses by attempting to seize part of your estate. You can prevent this from happening by protecting your assets with the help of a skilled Medicaid planning attorney. Our attorneys at Goeing Goeing & McQuinn, PLLC have years of experience working with Kentucky clients such as yourself on reviewing assets, setting up trusts and life estates, gifting and transferring ownership, and applying for Medicaid. Contact Goeing Goeing & McQuinn, PLLC today for a free initial consultation – (859) 904-2045.

Protecting Assets
If you anticipate entering into a nursing home soon and wish to enroll in Medicaid to help cover the monthly costs, you may be wondering how you go about reducing your monthly income to meet the financial eligibility criteria. If you are married and your spouse is not going into a nursing home, you cannot transfer all of your assets to your spouse. Kentucky will calculate both of your assets together. Then the total amount will be divided by two to determine your adjusted income. This can disqualify you and your spouse from Medicaid enrollment.

The look-back period is the five-year period before your Medicaid application is submitted. Kentucky will closely scrutinize this time period for any gifts or transfers of ownership. If you have made a gift or transferred ownership, Kentucky will calculate your penalty based on a precise formula – for every $199.46 you transfer or gift during this look-back period, you will be penalized by 1 day of Medicaid ineligibility. All of your gift amounts or values will be added together to determine your period of ineligibility.

Another way to protect your assets is to set up a trust. An irrevocable trust cannot be reversed. When you create a trust, you transfer ownership. You no longer own the property or money. Rather, the trust owns the asset. You appoint a trustee, who is usually a loved one or close friend, and the trustee is responsible for distributing the assets according to a plan you set out. In addition, in some cases, you can appoint yourself as trustee of the trust. However, again, you must be careful because some trusts will be susceptible to the Medicaid penalties.

Medicaid Planning Gurus Prepared to Protect Your Assets
The smart way to protect your assets is to seek the advice of a knowledgeable Medicaid planning attorney. The attorneys at Goeing Goeing & McQuinn, PLLC have years of experience, training, and education in Medicaid planning and can assist you with exploring your options, formulating trusts or life estates, and preparing your assets for your Medicaid enrollment application. Call Goeing Goeing & McQuinn, PLLC today for a free initial consultation at (859) 904-2045.