Two out of three families run out of money within the first year of a prolonged nursing home stay.
So are you destined to go broke if you require long-term nursing home care? Not necessarily, we can help you to obtain assistance from Medicaid, without having to spend down all your assets. We can show you ways to protect your life savings against the high cost of nursing home care through advanced planning, or help you in a Medicaid crisis situation.
The Medicaid Mistake
The worst thing you can do is to transfer assets to loved ones without fully understanding the possible consequences.
The laws surrounding Medicaid are very complicated and strictly enforced. Many people think they can simply transfer assets to loved ones and then qualify for Medicaid without penalty. Nothing could be further from the truth. The Deficit Reduction Act of 2005 established a “look-back” period of five years for all asset transfers or gifts. If it is determined an asset was transferred for less than fair market value during the five year look-back period, a penalty will be assessed, making the applicant ineligible for Medicaid for a number of months, even years. This means a nursing home stay will have to be paid for privately.
Even the sale of the family home for full market value can create problems if it is converted to cash. And while it is true you can gift a certain amount of money each year without having to pay gift taxes, those gifts may be considered uncompensated transfers by Medicaid and could result in a penalty period during which Medicaid benefits would be unavailable.
Consult with us before you begin transferring assets or applying for Medicaid. We will show you how to do so without incurring severe financial penalties.
What to do if you’re having a Medicaid crisis
If you or someone you love is currently faced with a Medicaid crisis situation, please contact us immediately to learn how we can help. We can show you a number of ways to get assistance from Medicaid and guide you through every step of the application process. And even if you have been denied benefits in the past, we may still be able to help you get every penny you are entitled to, and protect much of your life savings.