Medicaid planning is the process of protecting assets and obtaining Medicaid benefits in the event of a costly, long-term nursing home stay or for care and services provided at home.
Preemptive planning is best while the senior is healthy or somewhat healthy, as more options are likely to be available. When an emergency happens, the options are more limited. However, many legal techniques can still be implemented. An extended illness can take a profound financial toll on the person who is ill, as well as their family.
Medical and technological breakthroughs have allowed people to live longer. However, these last years can be filled with complex ailments resulting in diminishing quality of life. Moreover, many families are stuck in what society now calls “the sandwich generation.” These are people who are caring for their own children and their aging parents. Finances often dictate that the caregiver be working. As a result, the adult child may no longer be able to care for the aging parent without Medicaid benefits and services.
When a nursing home or care and services at home are needed, a lifetime of savings can quickly diminish. Therefore, it is imperative that the family seek competent counsel in helping to legally preserve the maximum amount of assets allowed by law. Legal and financial planning strategies are specifically discussed under the following articles Financial Planning to Pay for Nursing Home Stay, At Home Care and Financial Planning to Pay for at Home Care.and “Legal Considerations” on page 13 of this PDF.
Government regulations have made it increasingly more difficult to accomplish this. Constant changes in these laws make it necessary for the family to hire an attorney who restricts his or her practice to elder law and Medicaid planning. The attorney will often have to work in tandem with the senior’s financial planner and/or tax accountant to deal with ancillary tax matters that may arise with the restructuring of assets.
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