One of the most complicated areas of the law affecting the elderly is Medicaid rules, regulations, and procedures. One of the most stressful and expensive situations many ever experience is their need, or the need of their loved ones, to receive long-term care. Of all of the creditors many ever face, nursing home facilities are often the most demanding. If you need long-term care and are not eligible for Medicaid long-term care benefits, your assets will be depleted paying for that care, and they will be depleted quickly. Depending on your circumstances, you may be able to take steps now that will allow you to live in and keep your home, receive the income from your assets during your lifetime, preserve your hard-earned wealth for your loved ones, and still receive the care you need.
Medicaid benefits are need-based, and as a general rule, one must be impoverished with medical need before he or she can receive Medicaid. There are a number of financial and non-financial requirements that must be satisfied before one can be eligible for Medicaid, and one of the most difficult requirements to satisfy is the resource requirement. As a general rule, if a single person has countable resources in excess of two thousand dollars ($2,000), then he or she will not be eligible to receive long-term care benefits through Medicaid. Certain assets, however, are excludable resources, which means that the value of those specific assets does not count against the $2,000 limit on countable resources. As between married couples, if one spouse requires Medicaid long-term care and the other spouse is still at home, there are several techniques that can be used to preserve assets for the spouse at home and in the comfort the couple has historically enjoyed.
One trap into which many unwary people fall is thinking that they can become eligible for Medicaid by giving away (or “selling” at a price substantially less than fair market value) their assets. Don’t fall into that trap. It doesn’t work. What’s more, trying to give away your assets may land you in over your head. Medicaid planning is perfectly legal, and often a very smart move, but Medicaid fraud is definitely illegal, and always a bad move.
If you believe that you, or someone you love, may currently be eligible for Medicaid, or if you believe you, or someone you love, may need Medicaid in the future, you should talk to an attorney. Don’t walk blindly out onto the ice, hoping that your footing is secure. We can help you understand Medicaid rules so that you can evaluate where you stand right now, and how to get where you need to be. Please contact us to arrange an appointment to discuss your unique situation, so that you can have peace of mind as you move forward.