Why should you work with an attorney for Medicaid planning?
Full Answer
The need to qualify for Medicaid is related to the need to cover the high cost of long-term care (LTC). As you age, the likelihood of needing LTC increases dramatically. When you enter your retirement years, around age 65, you stand about a 50 percent chance of eventually needing LTC. If you are married, your spouse has the same odds.
At this point, you may understand why you might need Medicaid; however, the need for a Medicaid lawyer remains unclear. To clear that up, you need to understand more about qualifying for Medicaid.
If you have additional questions or concerns regarding the need for Medicaid and/or how a Medicaid lawyer can help you with Medicaid planning, contact the experienced Illinois Medicaid planning attorneys at Hedeker Law, Ltd. by calling (847) 913-5415 to schedule an appointment.
The seniors I serve in my practice all voice a very similar concern. They are terrified that they will need the services of a nursing home in their old age.
For those who are on the cusp of qualifying for Medicaid, pre-paying certain expenses has the dual benefit of reducing qualified assets and paying off known expenses.
Federal law ensures that you can provide for the “monthly maintenance needs” of your spouse while preserving Medicaid eligibility. It creates an allowance that ranges from approximately $2,000 to nearly $3,000 a month.
Irrevocable trusts are powerful tools that can help you qualify for Medicaid and preserve your assets. When created early on in the estate planning process, an irrevocable trust can shelter your assets, provide for the long term needs of your spouse, and create a legacy that will pass to your heirs.
By taking an early and critical look at your assets and making some early changes, you could stay in your house longer – especially through programs like the CDPAP . States are increasingly allowing Medicaid funding to go to providing home health care.
If qualifying for Medicaid was as simple as giving your family members and close friends all of your assets or selling things off for $1, everyone would do it! To stop people who would not otherwise qualify for Medicaid from claiming benefits, the system reserves the right to deny people who give away assets benefits and can sue an estate when benefits are improperly paid out.
While there are a few hard and fast rules concerning Medicaid eligibility planning, every client’s situation is unique and requires deliberate consideration. To create an individualized action plan with one of our qualified attorneys, click here to contact us and make an appointment.
On the other hand, Medicaid attorneys often focus more on the legal aspects of Medicaid planning, such as creating Medicaid asset protection trusts or Qualified income trusts, which makes them the better option for this type of assistance.
After the consultation / planning conference and gathering of the facts and needs, a price for services can be quoted. Medicaid planning fees can range from $3,000 to $12,000.The following factors can all impact the cost the cost of a Medicaid planning engagement. The more complicated the case, the higher the fees.
This strategy reduces one’s countable assets, while at the same time , protecting some of them for family. Essentially, Medicaid applicants gift approximately half of their “excess” assets (assets over Medicaid’s limit) to their loved ones and then purchase an annuity with the remaining “excess” assets. (An annuity turns countable assets ...
Medicaid attorneys and specialists also assist with crisis planning, which occurs when a senior needs Medicaid benefits within 30-60 days.
One such strategy that elder law attorneys can implement is a Medicaid asset protection trust (MAPT). This type of trust not only prevents one from becoming ineligible for Medicaid due to gifting assets (if done prior to the look back period), but it also allows one to protect assets for spouses to ensure they can live independently. Furthermore, MAPTs protect assets, including one’s home, for relatives upon the death of the Medicaid recipient, as assets in this type of trust are protected from Medicaid’s estate recovery program. This means that the state cannot attempt to be reimbursed for long term care costs for which it paid for the Medicaid beneficiary via these assets.
For persons who have Medicaid cases that are fairly simple and straightforward, a Medicaid planner, also called a Medicaid specialist or a Medicaid Advisor, might be a good option. Working with a professional Medicaid planner can be a lot more cost efficient than working with a Medicaid attorney.
The look back period is 5 years in all states except California (Medi-Cal has a 2.5 year look back).