Elder law attorneys answer questions that people have about nursing home asset protection. You should definitely seek out legal counsel if you have concerns, because there are misconceptions out there. If you listen to the rumors that circulate, you may come away with misinformation.
First off, we should point out the fact that Medicare does not pay for long-term care. If you were to enter a nursing home without making any preparations in advance to protect your assets, you would be entering into a contractual agreement with the facility. You would be required to make payments that you agreed to pay when you signed the contract.
A nursing home would not “get half of your assets.” You would simply be required to pay out-of-pocket for your care for as long as you could.
If your money was to run out, you would be able to qualify for Medicaid to pay for your care, because Medicaid is available to people who have very limited financial resources. However, you would have lost everything that you wanted to leave behind to your loved ones.
To avoid this type of scenario, you could speak with an elder law attorney about Medicaid planning strategies. Since Medicaid will pay for long-term care, you could be proactive as you aim toward future Medicaid eligibility.
There is a Medicaid asset limit of $2,000 for an individual, but if you are married, your spouse can maintain half of the shared countable assets up to a certain prescribed limit. This is one of the reasons why some people think that the nursing home will get half of your assets.
However, if you plan ahead in advance, you could give gifts to your loved ones with the other half before you apply for Medicaid. To do this with a maximum degree of effectiveness, you should act in advance, because there is a five-year look-back. If you don’t complete your gift giving at least five years before you apply for coverage, you have to pay out-of-pocket until you wait out a penalty period.
Nursing Home Asset Protection Consultation
When you are planning ahead for your senior years, Medicaid may well be an important piece of the puzzle. If you would like to obtain more information about the program, we invite you to contact us so that we can get to know you and answer all of your questions.
Our firm offers free consultations, and you can send us a message through this page to set up an appointment: Indianapolis IN Elder Law Attorneys.
At the consultation we will gain an understanding of your financial position and your family dynamic, and we will help you put a nursing home asset protection plan in place if you decide to go forward.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
- Is Your Power of Attorney Powerless? What to Do When a Third Party Won’t Honor an Agent’s Authority - September 11, 2019
- Are There Different Types of Special Needs Trusts? - September 4, 2019
- How Much Might I Receive in Veterans Aid & Attendance Benefits? - August 29, 2019