For many, growing older is something they may not think about, whether it’s because they’re focused on their life or due to the anxiety it can cause. Regardless, it’s important to understand the importance of planning in advance for the future, as there are no guarantees in life. Though you may know that creating an estate plan is critical, you should also begin Medicaid planning. The following blog explores why you should begin creating a plan as soon as possible and the benefits of working with Pennsylvania estate planning attorneys for this process.
What is Medicaid planning and why is it important?
There are many federal government-sponsored programs to help senior citizens later in life. One of the most common is Medicare, which helps cover medical appointments, medications, and other costs for seniors. However, one thing that Medicare does not cover is long-term care facilities. As such, those who need assistance must apply for long-term nursing home care through Medicaid.
In order to qualify for Medicaid however, you must have less than $2,000 in assets. This can put many in an unfortunate situation, as they are not in a position to afford the exuberant costs of long-term care but spending assets just to receive health care can be extreme for many. As such, Medicaid planning is important to ensure that you and your family have an idea of what will happen in the future.
There are several things you can do to “spend down” your assets to improve your eligibility for Medicaid, such as gifting assets to disabled or minor children. Additionally, you may be able to transfer assets into an irrevocable trust fund to help you qualify for Medicaid.
It’s also important to begin planning early, as Pennsylvania, like most states, imposes a five-year “lookback” period for assets transferred out of your estate. As such, if you wait too long to plan, it can impact your eligibility.
Can an attorney help me begin Medicaid planning?
Planning for Medicaid is an incredibly complicated process that requires legal assistance. If you try to navigate this process on your own, you will more than likely make an error that disqualifies you from Medicaid. As such, working with an experienced attorney is critical to navigate this process.
For example, there are a considerable amount of rules regarding the creation of a trust used with the intention of Medicaid planning, so ensuring you connect with an experienced estate planning attorney who understands the rule is critical.
At Friedman Schuman Layser , our team understands how important it is to plan for the future, which is why we will do everything in our power to help you achieve peace of mind. Contact our team today to learn how we can fight for you during these complicated legal matters.
