According to the United States Census Bureau, by 2030 one in five residents in the United States will be of retirement age. Many of us will eventually require costly long-term care in our old age. Medicaid planning is one important step that helps individuals prepare for their loved ones’ care needs or for their own future long-term care needs and should be part of every estate plan.
Medicaid planning can help individuals make the most of the financial help available for long-term care in Alabama. Since there are income and asset caps for those hoping to qualify for Medicaid benefits, Medicaid planning can provide options for protecting assets and income while still qualifying for benefits.
What Is Medicaid Planning?
Medicaid planning will depend on an individual’s circumstances and can be as simple as receiving assistance with a Medicaid application. However, ideally, Medicaid planning should commence years in advance of any potential care needs and can involve the restructuring of financial assets to ensure eligibility for benefits.
If an individual’s income or assets exceed the caps set by Medicaid, various options may be available, such as Qualified Income Trusts (QIT) and converting countable assets into non-countable assets. Other challenges that Medicaid planners can help with include asset and income division in the event that one spouse needs long-term care while the other continues to live independently.
Contacting experienced attorneys that are Medicaid planners with the appropriate legal and financial expertise can be an important step for those hoping to qualify for Medicaid. Mistakes with Medicaid planning can lead to costly and irreversible consequences.
Mistakes to Avoid with Medicaid Planning
When making plans for long-term care, consider contacting an estate planning attorney to help you determine if either you or your loved one need residential or long-term care. It can be a substantial mistake to simply ignore planning issues, as Medicaid rules and eligibility criteria for benefits are complex and timely planning is essential. However, it is never too late to get help. Even once a loved one has moved into residential care, an attorney can still help with protecting assets and receiving Medicaid benefits.
Ignoring the Look-Back Period
While it can be tempting to transfer large sums to children or grandchildren in order to qualify for Medicaid benefits, in many instances this can be a detrimental decision. Your financial transactions will be subject to review going back several years. The so-called “look-back period” is currently 60 months in Alabama, according to Medicaid.
Other mistakes to avoid with Medicaid planning can include:
â—Ź Applying too early or too late
â—Ź Not having a power of attorney
â—Ź Not taking advantage of spousal protections
â—Ź Taking advice from friends and family rather than seeking professional help
Call Miller Estate and Elder Law Today for Medicaid Planning
Do not procrastinate when it comes to Medicaid planning. If you are reaching retirement age, planning for potential long-term care needs can be essential for your future financial health. An experienced elder law attorney from our firm can help you with all aspects of Medicaid planning, including but not limited to:
â—Ź Medicaid applications
â—Ź Meeting income and asset limits set by Medicaid
â—Ź Protecting your income and assets
â—Ź Assisting you with long term planning and immediate crisis situations
● Making sure your spouse’s income and assets are protected
Due to the look-back period, planning well in advance can be important. Contact Miller Estate and Elder Law today to find out how we can help you: 256-472-1900.