The Pros and Cons of Medicaid Planning
An experienced Florida Medicaid planning attorney helps their clients structure their assets and financial resources and prepare documentation to create a scenario in which they are most likely to be accepted into the Medicaid program. Medicaid planning attorneys use a variety of tools and strategies, including trusts, asset transfers, converting countable assets into exempt assets to improve eligibility while preserving resources. In some cases, Medicaid planners also protect their client’s family home from Medicaid recovery and manage to manipulate finances to ensure that a healthy spouse has an appropriate income to continue to live independently while their partner is receiving care assistance through the public benefits program. It’s a particular category of expertise for a good reason – the laws and regulations associated with Medicaid eligibility and maintaining Medicaid eligibility are complex and change frequently.
Due to the complexity of the situation, it isn’t surprising that an estimated 60-75% of Medicaid applicants engaged in some Medicaid planning before submitting their application for benefits.
- The cost of caring for one spouse can quickly exceed a couple’s total resources (including the value of their home). Medicaid planning can protect a healthy spouse financially and allow them to remain living at home.
- Given the critical nature of Medicaid acceptance and the potential for both seniors to need long term care simultaneously, Medicaid planning considers how to protect the couple’s adult children from unnecessary financial hardship by preparing for eligibility and having a structure in place to support eligibility maintenance.
- While it is never too late to implement effective Medicaid planning strategies to preserve assets and maintain Medicaid eligibility, there are no requirements that families wait until they need long term care or public benefits to plan for the eventuality. Medicaid planning can start early when a healthy couple decides that they want to do all they can to preserve their assets and their health.
The Cons of Medicaid Planning:
- A mistake in Medicaid planning can result in a period of ineligibility for up to 5 years. Always work with an experienced Medicaid planning attorney.
- Medicaid planning attorneys come with the associated attorney fees, but the average cost of a Medicaid planning attorney is less than the cost of one month’s care in a nursing home.
While no one is required to work with a Medicaid planning attorney when seeking Medicaid benefits, in many situations, it is prudent, cost-effective, and highly advised. Get in touch with an experienced Medicaid planning attorney at Elder Solutions Law Firm today.