Medicaid Planning

The Deficit Reduction Act of 2005 has made Medicaid planning harder than before. If you wish to engage in Medicaid planning it is more important than ever to put your planning in place while you are still healthy. However, even if you are on the doorstep of the nursing home, there may still be planning opportunities to preserve your estate for your family. An elder law attorney can help you to protect your spouse and your family from the ravages of nursing home care.

Although you may be able to engage in Medicaid planning in a crisis situation, it is getting harder to do so and the sooner you begin planning the better. The sooner you begin planning, the more assets you can preserve for your family. Common planning documents include Durable Powers Of Attorney that provide gift-giving powers, Life Estates and Asset Protection Trusts.

You might consider long-term care insurance to protect your assets, if you qualify and can afford it. Prices have come down and benefits have increased over the years. The purchase of long-term care insurance may prove to be of great value for some consumers. In addition to preserving assets, long-term care insurance may give the insured more choices regarding his or her care. For instance, a long-term care policy may cover the cost of assisted living or adult day care, programs not available under Medicaid. You may also find home care easier to obtain with long-term care insurance.

An asset protection trust may also be the answer for some people. For instance, you might place your home in an asset protection trust. You will have the right to live in the home for the rest of your life but it will be preserved from the cost of long-term care. In New York, the trust may be drawn in such a way to preserve, STAR, senior citizen and veteran exemptions. If you wish to move, your trustee may purchase a new home for you. If you wish to change the beneficiaries of your trust, you may do so. You may also place other types of assets in this trust (e.g., bank accounts and stocks) and they too will be preserved from the cost of long-term care.