Medicaid Planning In Lancaster, Ohio
The cost of long-term care can be substantial, and it’s often an essential part of later life. When the time comes for you to seek assistance, having a well-thought-out financial strategy is essential. This is where Medicaid planning comes into play. Our Lancaster, Ohio Medicaid planning attorney is here to assist you in becoming eligible for the program while ensuring your assets remain protected. This way, you can still pass on your assets to your loved ones without compromising your care.
It’s advisable to begin Medicaid planning at least five years before you anticipate needing care. Since the exact timing is uncertain, it’s never too early to start. Reach out to our Lancaster Medicaid planning attorney today for a complimentary consultation.
Medicaid Eligibility
Medicaid will review your application to determine your eligibility. To be eligible, you must:
- Be disabled or 65 or older
- Meet the asset requirements
- Meet the income requirements
Your Ohio Medicaid planning lawyer can help you meet the income and asset requirements. With the right strategy, you can transfer the assets and income out of your estate while still benefiting from it.
Asset Preservation Trusts and Medicaid
Numerous people create Medicaid asset protection trusts to qualify for the program. All assets placed into the trust are no longer part of your estate and are excluded from the program’s asset limit calculations.
However, keep in mind that Medicaid has a five-year lookback period starting from when you apply for the program. Any transfers made within the prior five years will be scrutinized and deemed part of your estate during the application process. As a result, it’s critical to consult with a Lancaster, Ohio Medicaid planning attorney as soon as possible to begin estate planning.
Annuities for Medicaid Planning and Compliance
Is your income supported by annuities? If so, it is important to have your Lancaster, Ohio Medicaid planning attorney assess their Medicaid compatibility. Otherwise, your annuity income could impact your eligibility based on income and assets.
Medicaid-compliant annuities are unchangeable, non-transferable, and designed to provide for your lifetime needs. Additionally, they are structured to direct the funds to the state of Ohio upon your passing. If you want to incorporate Medicaid-compliant annuities into your estate plan, consult an attorney for proper guidance.
Unlocking Access to Medicaid: Meeting Income and Asset Requirements
Medicaid income and asset limits may vary over time, so it is best to check with the Medicaid website for the most up-to-date information. However, in 2021, Medicaid qualification hinged on strict financial limits. As an individual, your monthly income could not exceed $2,382, and your assets had to remain below $2,000. When applying as a couple, the income limit increased to $4,764 per month, with an asset cap of $3,000. If you find yourself exceeding these thresholds, don’t despair—our Lancaster, Ohio Medicaid planning attorney is ready to guide you. Contact Jarvis Law today to discover how innovative solutions like irrevocable trusts can help you meet Medicaid’s criteria.
Determining Income for Medicaid: What’s Included?
During the Medicaid eligibility process, everything from pension payments and social security benefits to stock dividends is deemed income. Unsure about how much income you have? Consult with a Jarvis Law Medicaid planning attorney who can assess your finances and advise on what actions are required to qualify for Medicaid.
7 Medicaid Myths In Lancaster, Ohio
Myth 1: You Must Give Up All Your Assets to Qualify for Medicaid
Ohio Medicaid eligibility does not require depleting all your assets. Although strict asset limits exist, there are legal ways to protect your assets and qualify for Medicaid benefits with a proper Medicaid plan.
With the help of an experienced Lancaster, Ohio elder law attorney, you can preserve assets and avoid spend-downs and home liens, ensuring your assets remain yours to control. We know how much you have invested in your future and will help ensure that you — not the government – choose what happens to your assets.
Myth 2: Transferring Assets to Loved Ones Disqualifies You from Medicaid
Asset transfers are indeed subject to strict Medicaid rules. However, using proper Medicaid planning strategies, you can transfer them within the allowable time frame. You can achieve Medicaid eligibility without risking your loved ones’ inheritance.
Ohio requires a five-year “look-back period,” meaning that transfers made within five years of your Medicaid application may incur penalties. That’s why it is never too early to start your Medicaid planning. A proactive approach ensures your preparedness and protection when you need long-term care.
Myth 3: You Must Sell Your Home to Qualify for Medicaid
Let us put your mind at ease: the prospect of losing your home to qualify for Medicaid is largely a myth. Medicaid often considers a primary residence an exempt asset, allowing you to simultaneously retain your cherished home and Medicaid benefits for long-term care. The only catch? The home equity value must remain under a designated threshold, and you must show a desire to return to the residence if your health permits.
If you’re single, the home exemption applies to you as long you maintain your primary residence. Married couples can take advantage of an unlimited home exemption if one spouse continues to live in the home. Medicaid offers additional provisions for those caring for disabled children.
Are you feeling overwhelmed? A Lancaster, Ohio elder law attorney with experience in Medicaid planning can help you navigate the Medicaid rules and your unique circumstances to ensure your beloved home remains safe and sound.
Myth 4: If You Have Medicare, You Have Coverage for All Your Healthcare Needs
Many people wrongly believe that Medicare covers all their healthcare needs. However, while Medicare covers many services, it only covers the cost of long-term care for 100 days—if the person enrolled in Medicare meets specific requirements.
Conversely, Medicaid covers long-term care services for those who qualify, a vital resource for seniors who require ongoing care.
Myth 5: If You Receive Medicaid, Your Spouse Will Lose Everything
Ohio’s spousal impoverishment rules safeguard your loved one’s financial stability, designed to protect the well-being of the “at-home” partner when their spouse needs long-term care. These regulations allow the community spouse to hold onto a specific portion of income and assets, ensuring they’re well-supported while their partner benefits from Medicaid.
Don’t navigate this complex process alone. An experienced Lancaster, Ohio Medicaid attorney can share savvy asset transfer advice to avoid Medicaid penalties; provide income allocation assistance to maintain the community spouse’s quality of life; and offer individualized estate planning strategies, including wills, trusts, and power of attorney documents.
Myth 6: Ohio Medicaid Only Covers Nursing Home Care
Ohio’s Medicaid program is a comprehensive care solution for eligible seniors, offering home and community-based service waivers and traditional nursing home coverage. The PASSPORT waiver program helps preserve assets and independence by providing long-term services seniors need without resorting to institutionalization. However, without proactive planning with the help of an experienced Lancaster, Ohio Medicaid attorney, you could face high long-term care costs, expensive spend-downs, or loss of assets.
Myth 7: After You Die, Medicaid Will Seize Your Home
Ohio’s Medicaid Estate Recovery Program seeks to recover funds from deceased individuals who received benefits. However, creating a trust can safeguard your family home and assets against possible recovery attempts. To ensure proper protection, consult an experienced and knowledgeable Lancaster, Ohio Medicaid attorney about your estate planning needs and goals.
