Medicaid Planning In Reynoldsburg
Long-term care represents a significant financial commitment, yet itโs often unavoidable. Having a strategy in place before you need assistance can make all the difference. This is where thoughtful Medicaid planning becomes essential. Our Reynoldsburg, Ohio, Medicaid planning attorney can guide you through qualifying for benefits while protecting your assets. Through careful planning, you can secure the care you need while still preserving an inheritance for your loved ones.
Starting Medicaid planning at least five years before youโll require care is important. Since you arenโt sure when that might be, itโs never too early to begin. Contact our Reynoldsburg Medicaid planning lawyer today for a free 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.
Medicaid Asset Protection Trusts
A Medicaid asset protection trust can be a valuable tool for meeting program eligibility requirements. When you transfer property and assets into this type of trust, theyโre effectively removed from your estate and wonโt be counted against Medicaidโs asset threshold.
However, Medicaid has a lookback period of five years from the date you apply for the program. When you submit your application, the government will check for all transfers made within the last five years. Those transfers will count toward your estate. Thus, itโs important to contact a Reynoldsburg Medicaid planning lawyer soon for guidance and to start the estate planning process.
Medicaid-Compliant Annuities
If annuities make up any portion of your regular income stream, itโs important to have them evaluated by your Reynoldsburg Medicaid planning attorney. This review ensures your annuities meet Medicaidโs specific requirements. Without proper structuring, these financial instruments could push you over Medicaidโs income and asset thresholds.
For annuities to meet Medicaid compliance, they must be structured as non-transferable and fixed-rate instruments that donโt extend beyond your lifetime. Additionally, they must be set up to designate the state of Ohio as the beneficiary after your passing. Contact a qualified attorney for guidance to explore adding Medicaid-compliant annuities to your estate planning strategy.
Income And Asset Limits
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, as of 2021, you cannot make more than $2,382 a month or have more than $2,000 in assets to qualify for Medicaid as an individual. If both you and your spouse are applying, your income limit is $4,764 a month, and the asset limit is $3,000. Even if you are well over the limit, your Ohio Medicaid planning lawyer can help. Consult with a lawyer today to find out how an irrevocable trust and other strategies can help you qualify.
Whatโs Considered Income?
The government counts all money that you receive as income. That includes pension, social security, stock dividends, and more. If you are unsure how much income you earn, consult an attorney. Our Reynoldsburg medical planning lawyer will review your finances to determine the strategies necessary to help you qualify for Medicaid.
7 Medicaid Myths in Ohio
Myth 1: You Must Give Up All Your Assets to Qualify for Medicaid
Qualifying for Ohio Medicaid doesnโt mean surrendering everything you own. While the program does enforce specific asset limitations, working with an experienced attorney to create a proper Medicaid plan can help you legally preserve your assets while still achieving eligibility for benefits.
With the help of an experienced 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 โ not the government โ choose what happens to your assets.
Myth 2: Transferring Assets to Loved Ones Disqualifies You from Medicaid
While Medicaid does carefully scrutinize asset transfers, they arenโt automatically disqualifying. Through strategic Medicaid planning, assets can be transferred according to program guidelines and timelines. This allows you to secure your Medicaid eligibility while ensuring your familyโs inheritance remains protected.
Ohio requires a five-year โlook-back period,โ meaning that transfers made within five years of your Medicaid application may incur penalties. Thatโs 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
Hereโs some reassuring news: you typically donโt need to sell your home to qualify for Medicaid assistance. In fact, Medicaid generally classifies your primary residence as an exempt asset, meaning you can keep both your home and receive Medicaid benefits for long-term care. There are just two key requirements: your home equity must stay below the programโs specified limit, and you must express an intent to return home if your health condition improves.
If youโre 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 Reynoldsburg, 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
Thereโs a common misconception that Medicare provides comprehensive healthcare coverage. While Medicare does offer extensive benefits, it has significant limitations when it comes to long-term careโcovering only up to 100 days and only when specific criteria are met.
This is where Medicaid becomes crucial: it provides long-term care coverage for eligible individuals, making it an essential program for seniors who need extended care services.
Myth 5: If You Receive Medicaid, Your Spouse Will Lose Everything
Ohioโs spousal impoverishment rules safeguard your loved oneโs financial stability, designed to protect the well-being of the โat-homeโ 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 theyโre well-supported while their partner benefits from Medicaid.
Donโt navigate this complex process alone. An experienced Ohio Medicaid attorney can share savvy asset transfer advice to avoid Medicaid penalties, provide income allocation assistance to maintain the community spouseโs 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
Ohioโs 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 experienced Reynoldsburg Medicaid attorneys, 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
Ohioโs 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 Ohio Medicaid attorney about your estate planning needs and goals.