People often don’t think about Medicaid until they need long-term care benefits. At that point, they may not have any time to plan in advance. Qualifying for Medicaid is not easy. The state imposes very strict limitations on current income and countable assets.
Those who have too much property or too much income may not be able to qualify until they reduce their personal holdings. They may be subject to a penalty before they become eligible for benefits. People can plan in advance to streamline the Medicaid qualification process.
What does advance Medicaid planning typically involve?
People frequently establish trusts
Medicaid planning often involves creating a trust. People transfer their assets to a trust years in advance before they require benefits. Typically, the authorities reviewing Medicaid applications can look back at up to five years of financial transactions.
Transferring property to a trust at least 60 months before applying for Medicaid can reduce the likelihood of a penalty that can help people qualify more quickly. In some cases, people can retain ownership of assets as long as they take on co-owners or complete other steps to protect those resources.
Reviewing personal resources and even estate planning goals can help people establish a Medicaid plan that gives them the security of qualifying for benefits quickly while preserving as much of their property as possible. Most people need help drafting the documents required by a Medicaid plan.
Generally speaking, Medicaid planning generally requires an effort to reduce personal holdings to be eligible as quickly as possible when the need arises later. People who plan in advance can feel confident about qualifying for benefits quickly and preserving their resources.