Why Medicaid Planning Should be Part of Your Estate Planning

When it comes to planning for the future, there are many things that need to be considered.  For many people, they may need an estate plan to help ensure the assets that they have built up over the years will not only be there for them throughout retirement, but also so they can leave something for their loved ones.  There are many aspects you can take care of during drafting your estate planning, but one thing that is often overlooked is planning for Medicaid.

Medicaid is a government program that is designed to help those who can’t afford to pay certain medical expenses get the care they need. This program is used by millions throughout the country, and one of the most important needs that it meets is paying the bills for long term care for the aging and elderly. Nursing homes and other long-term care facilities can cost tens of thousands of dollars per month in many cases, which is more than all but the richest among us can afford. Learning about this option and how you can qualify should be a part of any future planning.

Why Does Medicaid Require Planning?

When most people think of government programs like Medicaid, they assume that if they need them, they will be able to go in, apply, and get the help that is required.  There are many restrictions on qualifying for Medicaid though, so you need to plan ahead.  One of the most significant restrictions is in regard to the income and assets a person has acquired.  Those who have a higher net-worth, for example, can’t get on Medicaid until they have spent enough of their money to be able to qualify.

This is known as a Medicaid spend down plan, and it can end up costing you thousands of dollars before the government program will step in and start paying for the needed care.  If you start planning years in advance, however, it is often possible to take steps to ensure you can qualify for the program if it becomes necessary, without having to lose all your financial assets.

Medicaid Planning Options

If you begin planning for potential Medicaid needs early enough, it is possible to position your assets so that they aren’t considered for Medicaid calculations.  Using certain types of trusts and other vehicles can allow you to retain access to these assets, without sacrificing your ability to use Medicaid.  The longer in advance you begin planning, the more options you will have available.

Contact Us

Whether you are young or old, now is the time to start looking into how you will cover the costs of your long-term care, should it become necessary. Contact us to discuss all your options and get everything in place for today and your future.

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