When your loved one is preparing to enter a nursing home, you may do some research on your own or even consult with a financial planner regarding spending down assets. In order to qualify for Medicaid, many older couples in this situation start figuring out the most appropriate way to spend down assets. If you skip over the details, however, you might end up making two of the most common mistakes in spending down, which are spending down exempt assets and continuing to spend down after the qualification point.
Some items are exempted from being counted towards your asset amounts in Medicaid, but if you aren’t clear on the state laws governing this, you might make the mistake of liquidating those that would have been exempted anyways. Pulling funds from an exempted asset may be unnecessary and could jeopardize the couple’s future financially. Don’t spend down without knowing what’s exempt and non-exempt. Check with a professional to determine which of your assets are protected.
The second big mistake couples make is continuing to spend down their resources past the point of qualification. Don’t rely on information that comes from a source other than your elder law specialist- misinformation can be very misleading and costly. Determining qualification is a complex calculation that factors in shelter costs, assets, incomes, nursing home expenses, and other details. It should only be handled by an expert who can provide the best possible guidance regarding the qualification point. Don’t let the elder law complexities overwhelm you- schedule an appointment with an elder law specialist by contacting The Elder Law Center at Shah & Associates at 732-521-9455.
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