Medicaid “Estate Planning”
MEDICAID “ESTATE PLANNING”
More and more people are planning ahead and are creating trusts for the purposes of protecting assets and saving on probate. Part of planning for the Medicaid process is to involve the professional assistance of an experienced Elder Law or elderplanning professional. Be sure to find someone experienced who is familiar with estate law, tax law and Medicaid. Trusts must be drafted very carefully to avoid complicating the Medicaid process. Shifting assets can also have income, gift or capital gains tax consequences. Gift giving and transferring property between parents and children or spouses must be done at appropriate times and in appropriate ways. To satisfy the law, a plan for gifting assets must be executed several years before anticipation of the need for Medicaid. State and Federal regulations can also change regarding estate planning and Medicaid.
Legally, you can manipulate assets by making gifts, establishing trusts and other legal transactions. Work with your planning professional to find other ways to convert nonexempt assets into exempt assets. As with retirement planning, it is important to start this process BEFORE you have a health crisis and need care. Proper planning takes time. Start as soon as you can to put your estate plan in place. Your Medicaid plan will follow as a natural course in the planning process. An experienced attorney in Medicaid Planning can guide you through this process. Most will encourage you to complete your advance directives, funeral plans as well as to designate a Power of Attorney, if you have not already done so. Some will encourage you to take out a long term care insurance policy to cover the period of time it will take you to make these arrangements.
Once you are approved for Medicaid, most medical costs, both at home or in the nursing home, are covered. Medicaid, unlike Medicare, pays almost all home care costs for part time skilled nursing, home health services and medical supplies and equipment. Custodial and home care coverage may include adult day care, respite care, a transportation plan for medical appointments and an emergency response system.
Medicaid patients are often limited in choice regarding where they can live. Most residential care facilities and providers will place a higher priority on admitting private pay patients, although they are not allowed to discriminate based on the source of payment. Not all doctors and facilities accept patients who are on Medicaid and Medicaid only pays for facilities and providers that are Medicaid approved.
Hopefully this article has given you a head start in understanding Medicaid. Remember, having the right professional team to assist you and knowing what to expect and what your rights are during this process will make everything easier for you.
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