Some things just don’t go together, like oil and water or peanut butter and sardines. Sometimes it’s not a big deal – or the resulting problem is minor. But when something as important as your Medicaid eligibility is involved, that’s a different story. For example, do-it-yourself estate planning and Medicaid don’t mix at all. Here’s why:
What is DIY estate planning?
DIY stands for do-it-yourself. Americans are fond of taking on DIY projects ranging from planting an herb garden to building an addition onto their homes. However, your estate plan may be a lot more complicated and last a lot longer than the deck you built last year.
Due to the Internet, exposure to do-it-yourself estate planning has increased. People can click a few buttons and have a Will ready for signing. But DIY estate planning cannot analyze your particular circumstances, personalize your estate plan, listen to your concerns, and give information specific to special situations.
And it’s unlikely that DIY estate planning can address the need to plan for Medicaid eligibility.
What happens if you need Medicaid
Planning for expensive medical treatments, including long-term care, must begin before you need that care. DIY typically does not take that into account. You need an attorney who can review the facts of your case, then use knowledge of the law and experience to find the best options.
For example, a website algorithm may not take into account the Medicaid five-year look back period. Medicaid case workers will review an applicant’s financial history for 60 months prior to the date of application. Someone who uses DIY estate planning may sign the Will, then give assets to family members to decrease the value of his or her estate. Property may be titled or transferred in such a way that Medicaid eligibility is not affected. If done improperly, transfers or gifts made within that look back period may decrease, delay, or even prevent Medicaid benefits.
A lawyer who knows Medicaid can offer advice on how to avoid such penalties.
Medicaid Rules and Requirements Are Complicated
Don’t let DIY estate planning stand in the way of receiving benefits you deserve. Schedule a consultation with one of the attorneys at Miller Estate and Elder Law. Our phone number is 256-472-1900. Miller Estate and Elder Law is now located at 818 Leighton Avenue in Anniston, but we serve clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.