Key Takeaways | The Five Biggest Mistakes People Make When Applying for Medicaid
Having the right kind of power of attorney and trust is crucial for asset protection and Medicaid planning.
Assets in a revocable trust are not protected from nursing home costs.
Giving away or selling assets for less than fair market value can result in Medicaid penalties.
Transferring assets to eligible beneficiaries, such as disabled children, can be done without penalties.
Strategies can be implemented to maximize the resources of the community spouse.
Proper planning and seeking advice from an elder law attorney are essential to avoid costly mistakes when applying for Medicaid.
Episode Notes:
In this episode, attorney Bill Miller discusses the five biggest mistakes that people make when applying for Medicaid to pay for nursing home care. He shares stories and examples to illustrate these mistakes and provides valuable insights on how to avoid them.
The mistakes include not having the right kind of power of attorney, thinking that assets in a trust are protected from nursing home costs, giving away or selling assets for less than fair market value, failing to transfer assets to eligible beneficiaries, and failing to implement strategies to maximize the resources of the community spouse. He emphasizes the importance of proper planning and seeking advice from an elder law attorney.
Notable Moments:
(00:00) Introduction and Disclaimer
(04:19) Mistake 1: Not Having the Right Power of Attorney and Trust
(08:37) Mistake 2: Thinking Assets in a Revocable Trust Are Protected
(11:42) Mistake 3: Converting Exemplary Sources
(13:47) Mistake 4: Failing to Transfer Assets to Eligible Beneficiaries
(16:35) Mistake 5: Failing to Implement Strategies for the Community Spouse
(20:12) Conclusion and Importance of Proper Planning