Medicaid Planning In Ohio
Long-term care is often both expensive and necessary. When the time comes that you need assistance, you want to have a plan in place to pay for the care. Thatโs where Medicaid planning can help. Our Ohio Medicaid planning lawyer can help you qualify for the program without losing your assets. Then, you can still pass down assets to your beneficiaries without sacrificing care.
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 Ohio 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
Many people set up Medicaid asset protection trusts so they can qualify for the program. This is an irrevocable trust, so you cannot modify or revoke it once you create it. In addition, after you transfer assets into the trust, theyโre no longer part of your estate. Thus, they donโt count toward the programโs asset limit.
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 an Ohio Medicaid planning lawyer soon for guidance and to start the estate planning process.
Medicaid-Compliant Annuities
Do you depend on annuities as part or all of your income? If so, your Central Ohio Medicaid planning lawyer will review them to make sure theyโre Medicaid-compliant. Otherwise, the money will count toward your income and asset limits.
Medicaid-compliant annuities are non-transferable, fixed, and can only last during your lifetime. Also, you have to set up annuities, so the money goes to the state of Ohio when you pass away. Consult with an attorney if you would like to add Medicaid-compliant annuities to your estate plan.
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. Your lawyer will go over 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
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 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
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 onesโ inheritance.
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
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 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? An 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 daysโif 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
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 an experienced 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
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.