Last week on the blog we discussed how, when done properly, Medicaid planning is just a piece of the estate planning puzzle rather than an underhanded way to skirt government regulations. Unfortunately, there’s still quite a perception out there that Medicaid planning is somehow dubious and trying to capture as much of the government’s money as possible.
The crackdown on Medicaid planning opportunities isn’t really new, since Congress tightened the penalties for giving away money to qualify back in 2007. The average cost of a nursing home in America is $75,000 per year, and it’s even higher in New Jersey and along states along the Northeast. That being said, just one year in a nursing home could obliterate a parent’s savings. That’s where Medicaid planning comes in.
There are strict rules about transferring assets and giving gifts in the years before qualifying for Medicaid. Consult with an attorney so that you are fully aware of the best strategies to employ and the proper timeline to follow so that your loved ones are not hit with any penalties. Medicaid is there to help, but you must be willing to follow the rules and institute planning early if you intend to get the most out of this system. Consult your elder law attorney for more details. When you need an elder law specialist, we’re here to help- reach out to us at firstname.lastname@example.org.