Medicaid is a benefits program which is state and federally funded and administered by each state. Sometimes the rules can vary from state to state.
One primary benefit of Medicaid is that, unlike Medicare (which only pays for skilled nursing), the Medicaid program will pay for long-term care in a nursing home once you've qualified. If you are looking for Medicaid Attorney, then you can Schedule Your Planning Session With Our Attorneys by visiting our website.
1. PLAN YOUR ESTATE.
Even after a loved one has moved into a nursing home, legal strategies can be used to protect assets. Generally, this will require having a suitable durable power of attorney.
2. PRE-PAY FUNERAL EXPENSES.
A pre-paid funeral plan (if done correctly) is an exempt asset under the Medicaid rules.
3. GIFTING OR TRANSFERRING ASSETS.
The gifting or transferring of any assets for less than fair market value within the 5 years look back period will cause a penalty under the Medicaid rules.
4. CONVERTING COUNTABLE ASSETS TO EXEMPT ASSETS.
In addition to a pre-paid funeral, other assets are exempt (not counted) under the Medicaid rules. These include 1 home, 1 car, life insurance up to $1500.00, personal and household items and $2000.00. Buying a new car or undertaking home repairs or improvements are allowable.
5. PAYING BILLS OR OTHER PERSONAL EXPENSES.
Paying credit card bills, mortgages, car payments, or other personal expenses are permissible under the Medicaid rules.
6. GET HELP FROM A MEDICAID EXPERT.
There is no magic bullet when it comes to Medicaid planning. Typically, one or more strategies are used to protect assets depending on the individual circumstances. However, nearly everyone knows someone who claims to have some personal knowledge about Medicaid planning.