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Why you should not wait for a health crisis to start Medicaid planning

On Behalf of | Jun 7, 2024 | Medicaid

Medicaid planning is an essential aspect of comprehensive estate planning. However, many people in New York overlook it until a health crisis strikes. This approach can lead to missed opportunities and potential financial hardships. Here are three reasons why you should consider Medicaid planning early.

You can protect your assets

One of the primary reasons for early Medicaid planning is to protect your assets. Medicaid has strict income and asset limits. Without careful planning, you might have to spend down your assets to qualify. Planning early allows you to legally restructure your assets and income to meet Medicaid’s eligibility criteria. By doing so, you can protect your hard-earned assets and ensure that you can access the necessary care when you need it.

You can avoid penalties during the look-back period

The look-back period is one of the primary challenges of Medicaid application. This rule penalizes applicants who transfer assets within a certain period before applying for Medicaid. If you wait until you need long-term care to start planning, you may have limited options for restructuring your assets without incurring penalties. By strategically planning your asset transfers, you can ensure that they fall outside the look-back period. This could help you avoid potential penalties and ensure your eligibility for Medicaid.

You can have peace of mind

Knowing that you have a plan in place for your future health care needs can ease stress and uncertainty. It ensures that you will have access to the care you need when you need it without worrying about finances.

It is never too early for Medicaid planning

Medicaid ensures that you have access to health care services when you need them. It is a process that you should not delay until a health crisis. However, Medicaid planning is a complex process. A lawyer experienced in Medicaid planning can guide you through this process, helping you understand your options and implement strategies that align with your specific circumstances. With the right strategies and support, you can secure your future with Medicaid.