Adjusting Your Assets for Medicaid?

Planning ahead for Medicaid is an obvious step that most people in retirement contemplate at least once. Don’t fall for the assumption that Medicare and Medicaid will automatically cover all your expenses if you suddenly find yourself in need of long-term care. 

Medicare only covers certain expenses and Medicaid kicks in only once you have limited assets. If you’re new to the planning process, it might seem like the right choice is to give away as many of your assets as you can in order to meet Medicaid requirements, but doing this without the help of an estate planning and elder lawyer could be a mistake. Making gifts to someone for the purposes of spending down your assets within five years of applying for Medicaid looks like an attempt to skirt requirements and can lead to penalties for a person applying.

That’s why any advance planning for Medicaid should be done with the help of a lawyer. The good news is that there are legal and accepted ways in which to spend down your assets, but you need a long-term plan and the insight of someone who understands the Medicaid landscape. Trusts, long-term care insurance, and annuity purchases are just a few of the ways that you can legally add diversity to your estate plan and keep an eye towards qualifying for Medicaid in the future. It’s important to check references for anyone you’re planning to work with for Medicaid purposes.