Medicaid planning helps you preserve your assets for your family while also providing assistance for your care needs.
Because the process is complex and confusing, people often make mistakes that affect their eligibility.
1. Giving assets away too early
Adding someone to the deed for your home or other assets can pose potential problems down the road. It can extend your period of ineligibility for nursing home care based on the five-year look-back period in New York.
2. Not planning ahead
It is essential to prepare for the possibility of having to apply for Medicaid. Failing to plan can result in many lost months of eligibility. The timing of your application is critical. Applying for assistance too early or too late can cost you thousands of dollars.
3. Assuming you missed your chance to plan
You can protect your assets even after you or a loved one moves to a nursing home. Care in these facilities is expensive, making it vital to shield your estate. You almost always have planning options, regardless of when you start.
4. Failing to plan for your spouse
It is necessary to take advantage of your options for protecting your spouse if you need nursing home care. You can petition for an increased community spouse resource allowance, purchase an immediate annuity or access other legal options to ensure your partner can still pay their living expenses.
5. Misunderstanding how Medicaid affects your house
When you go into nursing home care, you do not automatically need to sell your home. However, the state will likely put a lien on your house and attempt to recover it following your death.
Medicaid planning presents many complications, and your life’s earnings are at stake. When you understand the process and the regulations, you can avoid making costly errors.