Delaying Your Medicaid Planning Might Be A Big Mistake

You can use Medicaid to take care of the medical expenses incurred by old age. Doing so is often wise, as medical expenses can – and, sadly, often do – lead to bankruptcy.

To obtain the Medicaid benefits you need, you must start Medicaid planning as early as possible. This will make it much easier for you to obtain the Medicaid benefits you need, when you need them.

Going over the importance of planning for Medicaid as early as possible, and speaking with a Florida Medicaid lawyer at the Millhorn Elder Law Planning Group today will help you obtain the Medicaid benefits you need.

What Is The 5 Year Look-Back Rule? 

To obtain the Medicaid benefits you need, you must qualify for these benefits. And, to do so, you must own assets worth no more than $2,000, while having a monthly income of no more than $2,901.

Regarding this point, your house and car will, in most cases, not constitute the asset limit. To go along with this, if you are married, the asset limit is $3,000 and you can have a monthly income of no more than $5,802.

In order for you to satisfy those limits, you can give assets to family members. And, you can do so, using a trust or a gifting process; among other possibilities.

Doing the above can reduce the assets you own, allowing you to qualify for Medicaid. But, there is one problem: to ensure that you qualify for Medicaid, Medicaid will go back five years and look at your assets/income.

Just as an example, if Medicaid learns that you owned $50,000 worth of assets, no more than a year ago, there is a very strong chance they will deny your claim.

On top of that, if they make this discovery while you are currently receiving Medicaid benefits, you may lose access to these benefits right then. This could put you on the hook for the benefits you already received from Medicaid.

How Can Early Medicaid Planning Help You? 

Early Medicaid planning can help you obtain the Medicaid benefits you need in a way that will not cost you anything.

If you do not plan for Medicaid early, there is a chance you will not qualify for Medicaid. This can make obtaining the medical care you need very expensive.

A good example of the above is as follows: if you want to give your children several cars and a house, those assets could be seized in order to pay for the medical care you need.

On the other hand, if you develop a trust that relinquishes your ownership of certain assets, ensuring that they go to your children/beneficiaries, you can qualify for Medicaid.

Doing the above will help you obtain the medical care you need, while also ensuring that your beneficiaries receive the assets you wish to give them. 

Speak With A Florida Estate Planning Lawyer Today 

If you need help planning for Medicaid, you should work with someone who can give you this help. Speak with a Florida estate planning lawyer today and we will help you obtain the Medicaid benefits you need. 

Sources: 

papers.ssrn.com/sol3/papers.cfm?abstract_id=3226574

law.cornell.edu/wex/trust