Why should I consider Medicaid planning?
Many people in the Central Valley might not think about qualifying for Medicaid.
Designed to help pay for the medical care of those with limited means, Medicaid is available to those who meet the program’s income and asset requirements. Many Californians who are planning their estates would not meet these requirements at present.
However, a person might realize that as he gets older, he will not have the funds to pay for an extended stay in a nursing home or other assisted living facility.
In other cases, there may be a painful choice to make between paying for necessary elder care and leaving a legacy to one’s children and other loved ones.
Even with the best long-term care insurance and planning, medical care and personal care for the aged can easily drain a person’s savings.
Californians can legally qualify for the Medicaid program to help pay for care
One option is for a person to make sure she will be able to qualify for Medicaid when the time comes for her to enter assisted living. Doing so successfully will mean that not all of a person’s wealth goes to medical care. Instead, some can go to loved ones or for other purposes.
Legally planning to go on Medicaid is a complicated and detailed process. Even just applying for Medicaid can involve legal questions, and sometimes Medicaid planning will entail creating trusts, doing planned gifting and making other estate planning and financial transactions.
Errors in Medicaid planning can unfortunately have serious negative consequences.
The most mistakes can make a person ineligible to receive benefits, meaning he, or his relatives, will have to figure out how to pay for elder care out-of-pocket.
This is why it is important for those wanting to plan to qualify for Medicaid to understand their alternatives and the legal consequences of their decisions.