If you’ve taken the necessary steps to create an estate plan, you should be proud, as many people who should be planning have yet to do so. However, there may be something you haven’t considered – Medicaid planning. Unfortunately, many people are unfamiliar with the importance of this process, so it’s critical to connect with Tampa estate planning lawyers who can help you navigate these complicated issues so you can fight for the best possible outcome during these matters. The following blog explores what you should know about these matters and how our team can help you plan for the future.
What Is Medicaid Planning and Why Is It Important?
While many are familiar with Medicare, which helps cover the cost of doctor’s appointments, medication, and other healthcare expenses, they may not know that Medicare does not cover the cost of long-term care. Instead, Medicaid is an insurance program offered by the federal government to help eligible citizens cover the cost of long-term care. The cost of nursing homes can be exuberant, leaving many interested in Medicaid.
However, unlike Medicare, which most people easily qualify for, the rules regarding Medicaid are much more strict, as this is a need-based program. As such, you’ll find that for Medicaid to cover the cost of your stay in a nursing home or other long-term care facility, you must have less than $2,000 in assets, or less than $3,000 if both you and your spouse are applying for Medicaid.
Because your assets must be very minimal, many have turned to Medicaid planning to help reach the qualifications for this program. This form of estate planning helps manage and reorganize your assets so you can qualify for Medicaid.
Do I Need a Lawyer for This Process?
If you or a loved one are interested in Medicaid planning, it’s critical to understand that you should connect with an experienced attorney as soon as possible for this process. There are many considerations that must be made to ensure that your Medicaid plan adheres to the law while also reflecting your wishes. Typically, this requires you to “spend down” your assets or create an eligible irrevocable trust fund to house assets, so they will not be counted toward your estate.
It’s also important to understand that when applying for Medicaid, there is a five-year “look back” period in which assets moved, transferred, or gifted in the five years before your application will be counted towards your assets. As such, it’s important to begin planning early to ensure you are prepared for the future.
As you can see, there are several important considerations you must make during this time to help provide peace of mind for the future. If you’re ready to begin planning, the team at Tampa Law Group is here to guide you through this process. Contact our firm today to discuss your wishes with a member of our team to learn how we can assist you in these matters.
