Medicaid planning is a strategy that can safeguard the future of senior citizens. This is a complex process, and it needs thorough consideration of various factors to ensure maximum benefits. Here is a list of 6 essential factors to remember during Medicaid planning for senior citizens.
Eligibility Criteria:
One has to meet certain parameters to avail of the benefits of Medicaid. Therefore, it is important to understand this requirement before proceeding with Medicaid planning for senior citizens. The income limits can be varied by state. The asset limits also vary, and assets like cash, investments, and property are considered.
Asset Protection:
Protecting the assets while availing the Medicaid benefits is also an important consideration that the applicant has to consider. Experienced attorneys implement various strategies like altering countable assets to exempt assets to protect the applicant's interest. Sometimes, prepaid funeral plans and particular annuities can also be used to protect assets during Medicaid planning for senior citizens.
Lookback Period:
Medicaid has a certain "lookback period." During this time, if any assets get transferred, they will be reviewed. Though this lookback period varies by state, it typically lasts five years. If the asset transfer has occurred during this period for less than the market value, then Medicaid may penalize that individual. Planning accordingly and avoiding improper asset transfers during this period is crucial in such conditions.
Income Planning:
Applicants with more than the Medicaid income limit must establish Miller Trust to get Medicaid benefits. This trust helps to deposit the excess income and use the money for future medical expenses. However, before going ahead, it is crucial to understand the specific rule associated with creating and managing trust.
Long-Term Care Planning:
Medicaid covers long-term care services that seniors require. This service can be availed at a nursing home or in the home. While considering Medicaid service, it is important to consider which specific care the senior needs and whether they can align with the Medicaid coverage in that state.
Estate Planning:
Estate planning is part of Medicaid planning. It mainly focuses on meeting the senior's wishes while maximizing Medicaid benefits. This planning phase involves creating a will, establishing trusts, or drafting power of attorney. Estate planning helps to protect assets from unwanted heirs.
Conclusion:
Medicaid planning for senior citizens is complex, and many rules and regulations are involved. Understanding the eligibility criteria, and other aspects is crucial for maximum benefit. Therefore, hiring any senior citizen attorney to handle this process is recommended. We at Platinum Services can guide and assist you in your Medicaid planning.
