People who anticipate that they might need Medicaid to pay for long-term nursing home care, need to plan ahead for it, if they hope to leave their heirs with an inheritance.
Staying in a nursing home for a long time is an excellent way to drain all of your finances and leave nothing for heirs. It is very expensive.
The government will help pay for long-term care in a nursing home through Medicaid, but Medicaid is only meant to pay for the poor. It is for people with no resources to pay on their own. Therefore, going on Medicaid is not a good way to preserve assets from nursing home expenses.
One way around this, is to intentionally not have any assets. Everything can be given away to heirs before going into a nursing home and requesting Medicaid, right?
Not so fast. It is not quite as simple as that. Planning for Medicaid needs to be done carefully, as the Wills, Trusts & Estates Prof Blog discusses in “Planning Ahead For Medicaid Approval.”
The first thing to be aware of is that the government has clawback provisions that prevent people from giving away assets for the purpose of receiving Medicaid.
Any transfers made within five years prior to requesting Medicaid, will be scrutinized. If the transfers were for less than fair market value, then Medicaid eligibility can be denied.
It is possible to use irrevocable trusts to get around Medicaid eligibility problems.
Needless to say, those trusts need to be created very carefully and they also need to be created ahead of time.
The services of an estate planning attorney are absolutely necessary to properly create the trusts.
Reference: Wills, Trusts & Estates Prof Blog (June 16, 2017) “Planning Ahead For Medicaid Approval.”
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.
Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!
I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!