Medicaid Planning
Few things frighten the aged and their loved ones more than the thought of losing their life's savings to long-term care costs. In Florida, the average annual cost of nursing home care is about $75,000.00. Many believe that they have to "appear" financially ruined to qualify for Medicaid Benefits. But most have no clue what they can do to protect their life's savings and still stay in control of it. So, feeling that they have no alternative, they give their life's savings to a loved one.
By doing so, they lose control over their life's savings. In most cases, the aged person recognizes that their loved one could use the money for their own needs, but trusts that they will not do so. In many instances, that trust is not misplaced. But what would happen to their life's savings if that loved one becomes divorced, incapacitated, dies or files for bankruptcy? In that circumstance, the aged individual could lose access to their life's savings forever.
For people who don't trust the loved one or are worried about losing access to their life's savings because of the reasons listed above, they do nothing. Then, when the aged person needs financial assistance to pay for their long-term care costs, they mistakenly think that it's too late to plan, so they do nothing. But nothing could be further from the truth.
There are numerous rules, frequently conflicting that determine who is eligible for Medicaid to help pay for long-term care costs. Medicaid Planning involves advising clients about what those rules are and applying the rules to their financial situation. The goal of Medicaid Planning is to protect the client's rights and maximize the assets that Medicaid allows them to keep or transfer.
In the overwhelming majority of cases, the people who are coming to see the attorneys at Chiumento, Guntharp & Selis, P.L. for Medicaid planning are not wealthy; and they are not trying to hide money. The people who come to see us are often the spouse or family member of an elderly person who is experiencing or will likely experience long-term care costs in the future. And without planning, their life's savings will likely be lost or significantly reduced or lost altogether.
The family feels overwhelmed. They are worried about how to pay for the huge nursing home bills and how to protect the spouse who is still living at home. The aged individual feels devastated by the thought that they spent their life working and saving, only to see it lost to the healthcare system.
They are sometimes planning for Medicaid eligibility in order to protect the spouse who will remain at home from becoming impoverished and to protect some resources to help the person entering the nursing home maintain the best possible quality of life in his or her last years. Others are planning for an unmarried individual whose needs cannot be met by the $35.00 per month of income and $2,000.00 of assets that individual can keep when they are on Medicaid. How can anyone support the family home on $35.00 per month and $2,000.00 in the bank? They can't.
The truth is, Medicaid Planning is usually done in the 11th hour, but it doesn't need to be. Generally, the earlier you plan, the better the result. But it's rarely too late to plan.
If you or a loved one is worried that their life's savings will be lost or substantially impacted by long-term care costs, contact Chiumento, Guntharp & Selis, P.L. today to find out about our free monthly workshops.