Elder care is expensive. If you aren’t careful, you could end up spending all of your money on this and having nothing to pass on to your children and grandchildren. This is where Medicaid planning comes in. An experienced Bergen County estate planning lawyer can help you learn more about this process and how you can keep your assets while receiving the care you need as you age.
What is Medicaid Planning?
Medicaid can be used to pay for elder care, but there is a small problem. Qualifying for this program is difficult if you have significant assets of your own. Medicaid planning can allow you to protect your assets while still qualifying for this program.
This process requires your assets to be moved around a bit. You can create trusts and fund them with your assets. When properly done, this keeps these assets separate from your estate and out of consideration when you apply for a program like Medicaid.
You can also transfer assets to loved ones early. If you knew that you were going to pass down a piece of property or home to your children when you die, you can transfer that asset before you pass. Even if you are still living in your home, it’s not counted as your asset if you have already transferred it to someone else.
What Are the Benefits of Medicaid Planning?
The obvious benefit of Medicaid planning is that you do not have to pay for elder care out of pocket. Many people only qualify for this benefit once they have already used all of their own assets to pay for care. They have nothing left by the time Medicaid kicks in, but Medicaid planning can help you enroll in this program as soon as you need care.
You can also avoid the state coming after your assets with proper planning. Normally, the state tries to recover assets from someone’s estate after they have passed if they used the Medicaid program to pay for care. The state wants to be paid back for the money it spent, but if you have taken the steps to plan for this and protect your assets nothing can be taken. Those assets can then be passed on to family members.
Should I Have Professional Help For This?
Medicaid planning is not easy. If you make any mistakes during this process, you could end up not qualifying for the program and doing a lot of work for nothing. You could even run into legal issues.
It’s just a better idea to have professionals handle this. It’s also a good idea to start planning early. You never know when you or your spouse will need to start paying for care and medical issues can pop up suddenly in your old age. If you have not prepared for this, you could end up paying out of pocket for care.
Contact Our Law Firm Today
If you want to learn more about how estate planning can help you protect your assets, contact the Law Offices of Colin M. Quinn. Every estate is different, so let us help you make a plan that’s uniquely suited to your circumstances and goals.
