A nursing home is a type of long-term, residential care facility typically designated for senior citizens. Though it may be uncomfortable to think about, there may come a time when you require the full-time medical care and personal care services that a nursing home has to offer. And so, you must account for this in your savings plan, but possibly more strategically in your estate plan. Follow along to find out how Medicaid may cover your nursing home costs and how one of the proficient Putnam County Medicaid planning attorneys at The Law Office of Andres D. Gil, PLLC can help you strategize.
How can Medicaid cover my nursing home costs?
Put simply, Medicaid covers a variety of health expenses that often come with aging, one of these expenses being nursing home costs. Though this is a beneficial program, Medicaid is typically only offered to low-income individuals.
If you have a significant amount of high-value assets, then you may find it easier to subscribe to long-term care insurance. You may still have to pay monthly premiums with your insurance plan, but this is still a better alternative than paying out-of-pocket for all your nursing home bills (i.e., the cost of your room, the cost of your on-site meals, the cost of your on-site medical care and therapies, etc).
How can I restructure my assets to qualify for Medicaid?
Instead of opting for long-term care insurance, you may want to find a way to reduce the value of your estate. In other words, you may strategically restructure your assets with an estate plan. What’s more, this is a better alternative than spending down your hard-earned assets. Without further ado, examples of how you may simultaneously move around and protect your assets are as follows:
- You may transfer the ownership of your assets by creating an irrevocable trust.
- You may transfer the title of your home to your beneficiaries by creating a life estate.
- You may turn your assets into income by buying a Medicaid-compliant annuity.
- You may give yearly financial gifts to your beneficiaries.
- You may pay off your outstanding mortgages and debts.
- You may prepay for your funeral expenses and burial arrangements.
It is worth mentioning that you should initiate this asset restructuring several years before you plan to apply for Medicaid coverage. This is because Medicaid has a “look-back” period that reviews your financial transactions made within the last five years. So, any significant financial activities, such as the activities mentioned above, may trigger a penalty period that temporarily bars you from Medicaid benefits.
All things considered, you should not have to go through your asset restructuring alone. Instead, you should seek the assistance of a talented Putnam County estate planning attorney from The Law Office of Andres D. Gil, PLLC. Contact our firm today.