Estate Planning And Elder Law Services In Orlando And Beyond

2 Medicaid planning mistakes to avoid

On Behalf of | Jan 2, 2024 | Estate Planning |

Most people require nursing home care at some point. But this service can be quite expensive. And this is where Medicaid planning comes in. If you qualify, Medicaid can pay for long-term care costs. 

However, as with most government programs, strategic Medicaid planning can mean the difference between receiving the funds you need to pay for long-term care and having to foot the bill yourself.

Here are common mistakes you want to avoid while planning your Medicaid:

Delaying the process

It’s important that you get a head start on your Medicaid planning process as soon as possible. Remember, the government looks back 5 years into your financial records when determining your eligibility. During this period, the government will check if you gifted away or transferred assets that would have otherwise impacted your eligibility. Do not fall for the assumption that you can just give away your assets and apply for Medicaid thereafter. The sooner you kickstart your Medicaid planning journey, the better you will position yourself for acceptance into the program. 

Failing to adequately protect your assets

Again, thanks to the 5-year look-back period, it is essential that you correctly transfer your assets at the right time. This may involve setting up trusts as well as directly transferring your assets to your beneficiaries. This also involves getting important documentation (like your power of attorney) right. Without proper asset protection or documentation, you may end up with a delayed or denied claim. 

Medicaid planning can be a complex process, especially when your health begins to deteriorate, and you have so much to take care of. Understanding the basics of Medicaid planning can help you stay ahead of your long-term care plans so you can have the peace of mind you deserve in your sunset years.