Medicaid planning can be a difficult and confusing process. The following are some common mistakes people make when planning to apply for Medicaid.
Thinking It’s Too Late to Plan
It’s almost never too late to take planning steps, even after a senior has moved to a nursing home.
Giving Away Assets Too Early
First, it’s your money (or your house, or both). Make sure you take care of yourself first. Don’t put your security at risk by putting it in the hands of your children. Precipitous transfers can cause difficult tax and Medicaid problems as well.
Ignoring Important Safe Harbors Created by Congress
Certain transfers are allowable without jeopardizing Medicaid eligibility. These include: transfers to disabled children, caretaker children, certain siblings and into a trust for anyone who is disabled and under age 65; a transfer to a ‘pay-back’ trust if under age 65; and a transfer to a pooled disability trust at any age.
Failing to Take Advantage of Protections for the Spouse of a Nursing Home Resident
These protections include the purchase of an immediate annuity, petitioning for an increased community spouse resource allowance, and in some instances petitioning for an increased income allowance or refusing to cooperate with the nursing home spouse’s Medicaid application.
Applying for Medicaid Too Early
This can result in a longer ineligibility period in some instances.
Applying for Medicaid Too Late
This can mean the loss of many months of eligibility.
Not Understanding How Medicaid Affects Your Home
Nursing home residents do not automatically have to sell their homes in order to qualify for Medicaid, but that doesn’t mean the house is completely protected. The state will likely put a lien on the house while the resident is living and attempt to recover the property after the resident has passed away.
Not Getting Expert Help
This is a complicated field that most people deal with only once in their lives. Tens of thousands of dollars are at stake. It’s penny wise and pound foolish not to consult with an attorney who knows how to guide clients through the process.
Your Help Is Here
The team at Mannor Law Group is experienced in securing Long Term Care Medicaid for our clients. Not to mention, Attorney Bob Mannor is one of only 19 Nationally Board Certified Elder Law Attorneys in the state of Michigan. You will be in good hands. We promise. Contact us today.