Life throws curveballs sometimes, and we have to be ready. In her 40s, Joanie thought Medicaid planning was far ahead of her. She put off talking to her attorney about Medicaid planning. Unfortunately, she suffered permanent traumatic injuries as a result of a car accident. Her family frantically searched for ways to pay for Joanie’s 24/7 nursing care. As they started the Medicaid application process, they wished Joanie would have done some Medicaid planning.
Why Start Medicaid Planning?
Long-term care is expensive. There are basically three ways to pay:
- Self-pay, which can deplete a person’s life savings;
- Long-term care insurance, which may charge high premiums or be impossible to get; or
- Government benefit programs, like Medicaid.
Applying for Medicaid is not easy. For one thing, Medicaid uses a 60-month look back period. This means they review an applicant’s financial records for the 60 months prior to his or her application date. Certain transactions may cause Medicaid benefits to be delayed or even denied. However, Medicaid planning can take care of this before Medicaid is even needed.
For example, an individual might change their property titles or transfer all their property to a trust or just outright give real property or high-end assets to heirs. This type of activity must be done before the 60 month look back period, though.
How to Start Medicaid Planning.
Consult with an attorney who understands the Medicaid process. Specifically, you will want to talk to someone who knows
It may be possible for you to re-title your property. This can be tricky and lead to unintended – an unwanted! – consequences if done incorrectly.
An attorney who understands Medicaid planning may be able to give you more information about long-term care insurance. It’s not for everyone but can be an excellent way to pay for long-term care instead of digging into savings and retirement accounts.
Finally, there are trusts that may allow you to safeguard at least some of your hard-earned assets for your heirs.
Don’t Wait.
The attorneys at Miller Estate and Elder Law know how to help you with Medicaid planning. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We also offer free workshops and guides with more information about topics that matter to you. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.