(Newswire.net — June 22, 2020) — Old age comes with many worries, plans and preparations, with medical care at the top of the list.
As people age they are expected to think of their health and well being. This preparation is where Medicaid Estate Planning comes in.
Medicaid Estate planning focuses on your long-term care after retirement and long life. Because seeking long-term care is inevitable at some point in time, everyone should make plans early.
Medicaid planning is the process of preparing documents and organizing assets to ensure the likelihood of Medicaid approval. Medicaid covers long term care services in a variety of settings, these settings can include care at home or in a nursing facility.
Cost of Long-Term Medical Care in Medicaid Estate Planning
The essence of this plan is to protect a person’s estate and keep them eligible for long-term medical care, and the cost is an integral part of this plan.
If you are seeking long-term health care, you should understand the details of available programs, and know the legal background for this plan.
Medicaid Overview: Goals and Benefits
Medicaid is a federal program that covers the cost of long-term health care for eligible adults.
Every state administers this program which was implemented in 1965, and some details might vary from one state to the next.
The program aims at older adults who are financially and medically incapable of footing their bills.
Every state defines this financial inability in different financial terms and other essentials, including a home in cases of homecare, life insurance, funeral contract and a vehicle.
It is imperative to work with these limitations and understand what assets are exempted from stipulations.
All you need to know about Eligibility and Asset Exemptions for Medicaid Planning
There are several specifics you must understand and observe to qualify for Medicaid without losing all your assets
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Marital Home exemption
You can be eligible for long-term care even if you own a home, as long as you have families to live in it.
You can also benefit from this program no matter what your spouse or kids with your marital home, as your spouse’s action will not affect your Medicaid plan.
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Asset Transferability
People applying for Medicaid can only transfer their assets to spouses, trust funds for disabled persons under 65 or sick and disabled children under 21.
The speculation also exempts houses transferred to caregivers who lived there over 2 years or siblings who have equity interests in the building.
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Refusal of Spousal Support
Spouses can refuse to pay for the medical care of their partners, depending on the jurisdiction that allows such.
In such circumstances, the Medicaid beneficiary can transfer their assets to their spouses who will prevent them from getting sold.
You would need a lawyer to help you through this process.
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$14,000 Exception
While contributors can gift $14,000 of the funds to anyone according to the Internal Revenue Service’s specification, a Medicaid beneficiary can be penalized for such action when a ‘Look-back’ is conducted into their assets.
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The Look-Back Period
Medicaid beneficiaries have to meet the criteria 5 years before applying. This means that your Medicaid application will be reviewed as far back as 5 years, which is the look-back period to make sure an applicant doesn’t just transfer their assets and apply for this benefit.