The average costs of long-term healthcare is $90,000 per year. That’s money that can drain away our assets in a hurry in old age. Furthermore, there are several costs associated with long-term healthcare that go uncovered by both Medicare, the government program for the elderly, and standard private insurance plans. Clients need good strategic planning to help manage expenses in years where they may be in physical or mental decline.
Clients who come to our Boardman elder law attorney get thoughtful and thorough service delivered at a reasonable price. From our Boardman office, we serve all of Mahoning County and throughout Columbiana County and Trumbull County. Call today at (330) 341-8588 or reach out here online to set up a free consultation.
Many people don’t think of Medicaid as a program that’s meant for them. It’s most commonly perceived use is as the government program designed for those whose income may be under the poverty line. But due to how steep the financial costs of long-term care are, Medicaid can also be used to pay for these expenses.
However, applicants must meet certain requirements. Cash assets cannot exceed specified levels and there are limitations on how much real estate a person can own and still qualify for Medicaid. These requirements vary depending on whether one is married or single. The applicant whose assets exceeds these thresholds can be denied Medicaid and subject to paying all long-term care costs out of their own savings.
That’s where a Boardman Medicaid planning lawyer comes in.
The objective of Medicaid planning is to reduce a client’s assets and exposure, while still allowing them to retain a reasonable standard of living. One method of doing that is a trust. Clients can put their assets into a so-called “Medicaid trust”. These assets are now the property of the trust, rather than the client. The trust can still pay out monthly income to a client, but it can ensure that the income stays below eligibility thresholds. Other options include gifting assets to trusted family and friends.
It's important to start planning this out well in advance. The state of Ohio has a five-year “look back” window. That means the previous five years of financial records are subject to review upon application for Medicaid. Assets put into a trust may need to be there for five years before they will not work against a client’s eligibility. Cash given away, or property sold for less than market value, may be counted against the client. Medicaid access can be either delayed or denied.
Strategic Medicaid Planning You Can Trust
At DiLoreto Law, our Boardman elder planning attorney will sit down with clients and prepare a thoughtful plan to protect their assets. We take a close look at all the factors that should impact when assets should start going into a trust and how the trust should work. Our goal is to protect both Medicaid eligibility and quality of life.
We serve all of Mahoning County and throughout Columbiana County and Trumbull County. Call today at (330) 341-8588 or contact us online to set up a free consultation.