Attempting to plan for long-term care can be difficult. There are many people out there offering advice about the best methods to protect the assets you have or to put them into the hands of the people you most care about, but unless they are a dedicated attorney with experience dealing with the complicated system of asset protection and estate planning, you may not want to follow their suggestions. Instead, contact us at Safe Harbor Wills & Trusts in Watertown and Syracuse to speak with an attorney who has dedicated his practice to helping people protect what they have worked for and to better plan for the future.
Today, we want to talk about a few of the misconceptions that people have about ways to make it easier to qualify for Medicaid. While there is almost always a kernel of truth or sound reasoning behind these ideas, the truth is more nuanced. Contact us today to find out how we can craft an asset protection plan that will work for you and your family!
You Can Give Away Your Money to Qualify for Medicaid
Medicaid eligibility is determined by a number of factors set by the federal government and includes age, medical needs, and financial requirements. Many people believe that one way to qualify for Medicaid as they grow older is to give a lot of their money away to friends and relatives. While the IRS allows you to give away $14,000 to as many people as you want in any given year without incurring a tax penalty, Medicaid sees things very differently. In fact, for every $9,511 one has given away in the previous five years, one is disqualified from Medicaid eligibility for a month. For example, if you gave $38,000 to your children and grandchildren over the last four years, you will not be able to receive Medicaid coverage for three months.
Medicaid understands that people want to qualify for this help, so they do everything they can to stop people from trying to take advantage of the system. There are several ways to overcome this problem, and at Safe Harbor Wills & Trusts, we will work with you to build a personalized plan that is right for you. There is no easy answer, no one-size-fits-all retirement and asset protection plan, so we use our experience in the field to help create a program that takes into account your unique situation and helps you plan for the future as thoroughly as possible.
Check back soon for part two of this blog series where we will cover other problematic advice about how to qualify for Medicaid, as well as more information about trusts and how they may be a great way for you to protect your assets for your beneficiaries while still being able to qualify for Medicaid when or if the time comes that you need nursing home care. Contact us at our Syracuse or Watertown offices to set up an appointment to discuss your unique situation with an attorney who wants to help.