Plan for Medicaid Before You Actually Need It

Many seniors believe that they have plenty of time for Medicaid planning in Stuart. In reality, the timeline is much shorter than they realize. The truth is that by the time you need Medicaid, it is often too late to put effective planning strategies into place. As a result, it makes sense to begin Medicaid planning before you actually need it.

Why You Need to Start Planning Five Years in Advance 

The most effective Medicaid planning strategies go into effect five years in advance. This is because certain strategies become impossible if you implement them less than five years before you apply for Medicaid. The lookback period for Medicaid is five years, which means that the government analyzes your previous five years of financial transactions when searching for anything that might disqualify you from this needs-based program.

If you want to qualify for Medicaid and your assets are above the maximum threshold, your first thought might be to give excess assets away to your family members. After all, you’re probably going to leave an inheritance behind, so why not make these transfers now instead of making your beneficiaries wait until you’re gone? The problem is that if you give away excess assets in order to qualify for Medicaid, you will still be ineligible if the transfers occur less than five years before you apply.

The same logic applies to the creation of trusts. A Medicaid trust is one of the most effective planning strategies, and it allows you to benefit from this needs-based program while still protecting your assets. Unfortunately, the government will deny your eligibility if you create an irrevocable trust less than five years before applying for Medicaid.

There are many other strategies that also become impossible due to the five-year lookback period. The key takeaway is that if you’re serious about Medicaid planning, you should start this process before you need medical assistance. Even though it might seem illogical to plan for the worst-case scenario while you’re still relatively young and healthy, this is actually the best possible time to get started.

What if I Don’t Have Five Years?

If you don’t have five years and you need to apply to Medicaid as soon as possible, all is not lost. Certain strategies may still be viable. Although your options may be more limited, an experienced lawyer may be able to help you qualify. “Spend-down” strategies may be particularly useful in this scenario, and home renovations can shift your non-exempt assets into your homestead exemption.

Can a Medicaid Planning Lawyer in Stuart Help Me?

Now that you understand the importance of the five-year lookback period for Medicaid, you may be eager to get started as soon as possible. Even if you believe that you won’t need Medicaid for more than five years, health issues have a knack for appearing without any warning. Schedule your consultation with the Stuart Medicaid planning attorneys at Kitroser Lewis & Mighdoll today.

Source: 

marketwatch.com/story/my-brother-says-lawyers-can-get-him-into-a-medicaid-nursing-home-despite-his-many-assets-is-this-a-scam-614c2f85