A series of strategic and legal steps are required for Medicaid planning. The main objective of Medicaid planning for families is to ensure they qualify for Medicaid benefits while preserving the assets and financial security of the family members. Since Medicaid rules and regulations are complex, it is best to hire a professional. Here is all about how Medicaid planning is done.
The initial step in Medicaid planning is to comprehensively understand Medicaid eligibility requirements in the specific state where the family resides. Medicaid eligibility is determined by income and asset limits, which vary on age, disability, and marital status.
Current Finance Condition Assessment:
Professionals handle Medicaid planning for families to access the family's current financial situation, like income, assets, and liabilities. This assessment helps identify potential challenges and opportunities for Medicaid planning.
Identifying Exempt Assets:
There are some assets considered exempt from Medicaid's asset calculations. These include primary residence, personal belongings, a vehicle, and certain kinds of irrevocable trusts. Medicaid planning for families aims to utilize these exemptions to protect the assets from being counted towards Medicaid eligibility.
Irrevocable trusts like Medicaid Asset Protection Trusts (MAPT) or Special Needs Trusts (SNTs) can protect assets while qualifying for Medicaid benefits. These trusts remove assets from the individual's control. Platinum Benefit Services offers solid Medicaid planning for families that safeguards the assets while making the applicants eligible for Medicaid benefits.
When one spouse needs Medicaid benefits for long-term care, it is crucial to protect the financial well-being of the healthy spouse. Medicaid planning also involves using the spousal impoverishment rules to ensure that the healthy spouse has sufficient income and resources.
Long-term Care Insurance:
Medicaid planning also includes long-term care insurance options, which is an alternative way to cover potential long-term care expenses. Long-term care insurance helps protect assets and provide additional financial resources.
Spend Down Strategies:
If the family’s asset limits exceed Medicaid’s asset limits, professionals who handle Medicaid planning for families, advice implementing a spend-down plan to reduce the countable assets. They guide families to use assets for qualified expenses like home modifications, prepaying funeral expenses, or paying off debts to meet the eligibility requirements.
Medicaid planning for families is a complex and nuanced process that requires careful consideration of the family’s financial condition and the specific Medicaid rules in the state. Engaging with Platinum Benefit Services will ensure that the planning is done perfectly and in compliance with Medicaid guidelines.