Welcome to Farah Roberts Ltd. Attorneys and Counselors at Law.
Medicaid Planning Attorneys in Rocky River, Ohio
What is Medicaid Planning?
As the costs of long term skilled nursing care have continued to skyrocket, it has become more difficult, if not impossible for most families to absorb the cost of caring for their loved ones. And most people do not like to think that they worked and saved their whole lives just to see their savings depleted when their spouse needs to go to a nursing home.
However, there are certain ways to protect and preserve assets. Figuring out the best strategy to protect and preserve your assets, and then putting that plan into action is Medicaid Planning.
Are you concerned about:
- Running out of money if you (or your spouse) become ill and require significant care?
- Having no control over who provides care for you if you need it?
- Choosing the type of care you want and where you want to receive it?
- Leaving an inheritance to your loved ones, only to have it taken by their creditors?
- Your children misusing the property or money you leave to them?
- Providing support to a loved one with a disability both during your lifetime and after your passing?
- Making sure your wishes about care and your finances are carried out?
If you answered “yes” to any of the questions above, the attorneys at Farah Roberts Ltd. can help. Call us today for an appointment. And remember, any long-term care asset protection plan is not a one-size-fits-all scenario. Each asset protection plan designed at Farah Roberts Ltd. is tailored to your individual concerns, goals, and desires.
Medicaid planning typically occurs under two different umbrellas: Crisis Planning and Proactive Planning.
Medicaid Crisis Planning
In a crisis scenario, someone has already been admitted to a nursing home or will be shortly. The goal is to protect as many assets as possible while getting the person qualified for Medicaid as quickly as possible. Possible planning strategies include putting assets into an irrevocable trust, giving assets to a loved one outright, transferring assets into a revocable trust, making certain exempt transfers to a blind or disabled child or other disabled person under age 65, spending money on certain Medicaid approved expenditures like home renovations, paying down debt, purchasing a prepaid funeral services contract, or purchasing an exempt automobile, and purchasing a Medicaid compliant annuity. There are several different planning strategies available and the attorneys at Farah Roberts Ltd. will help you identify the most appropriate strategies for your specific situation.
Because the transfers of assets in a crisis situation will cause a penalty period during which the Medicaid applicant will have to private pay for nursing home care, it is often a good idea to purchase a Medicaid compliant annuity. A Medicaid compliant annuity essentially takes an asset out of the “countable resources” column and turns it into an income stream during the penalty period so that the applicant’s care is covered. Medicaid compliant annuities have very specific requirements. The attorneys at Farah Roberts Ltd. can ensure that your annuity complies with all Medicaid requirements.
Medicaid Proactive Planning
Proactive planning means planning ahead of time for a potential nursing home stay. In a proactive planning scenario, there are several Medicaid planning strategies available. Many of them overlap with crisis planning strategies, but when people are able to plan proactively, there is at least a chance that there will be no penalty period imposed by Medicaid during which the applicant has to private pay. If planning occurs 60 months or more before long term care becomes necessary, then Medicaid will not penalize the transfer(s) of assets, and the Medicaid applicant will be immediately eligible for Medicaid.
Proactive planning strategies include things like creating an funding an irrevocable long term care asset protection trust, gifting outright, transferring assets to a revocable trust, transferring the home while preserving a life estate, purchasing a prepaid funeral services contract, creating a burial services savings account, paying off a mortgage or other debt, taking out a reverse mortgage, and making exempt renovations to the home. While there are many planning strategies available, not all of them will make sense in your particular situation. The attorneys at Farah Roberts Ltd. can help guide you and your family through the planning process and help you make decisions about the most effective strategies for your situation.