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November 25, 2019

According to the United States Department of Health and Human Services, someone turning 65 today has an almost 70 percent chance of needing long-term care at some point in their lives. When it comes to paying for long-term care, many people assume that their health insurance or Medicare will cover it – and both assumptions are usually false. For this reason, unless you are able to qualify for Medicaid, you may find yourself paying out of pocket for long-term care when you need it.

Long-Term Care is Extremely Expensive

It’s important to understand that long-term care can be extremely expensive. In some cases, monthly costs can easily approach $10,000 a month, so even relatively short time spent in long-term care can make a significant dent in even a fairly substantial estate.  Fortunately, Medicaid planning can help individuals obtain Medicaid eligibility while protecting their assets for future generations.

Medicaid Planning Can Help You Qualify for Medicaid while Protecting Your Assets

Medicaid is a joint state and federal program that provides health coverage for people with low incomes. In order to qualify for Medicaid for long-term in Florida, you cannot have an income of more than $2,313 per month, and you can only have $2,000 in countable assets.

If you do not plan ahead to qualify for Medicaid, you will be required to “spend down” your assets before you are eligible for benefits. This means you will have to deplete your hard-earned estate first, which leaves nothing left for your beneficiaries. Many people come to us wondering if there is another solution rather than foregoing Medicaid benefits until they spend all of their assets. The good news is that there are certain tactics you can use ahead of time to protect your assets and still qualify for Medicaid for your long-term care. 

Medicaid planning typically involves  a variety of techniques, including:

  • Spousal asset transfer – If your spouse does not need long-term care, they are considered to be a “community spouse,” and there are a much higher asset and income thresholds for them to cover their expenses. We can help you transfer assets to your spouse to help you qualify for Medicaid.
  • Medicaid Asset Protection Trust – This is an irrevocable trust that you can form and name someone other than you and your spouse as the trustee. You will not be able to benefit from the principal trust property, though you can protect your property and assets for your beneficiaries.  

These are only two examples of tactics we use to help our clients plan for asset protection and Medicaid eligibility. 

Contact Our Florida Medicaid Planning Attorneys for Assistance

At the Legacy Law Firm, we are committed to helping our clients plan for the future while protecting their assets. We understand how important it is for many Floridians to qualify for Medicaid to cover the cost of long-term care and ensure that our clients’ hard-earned assets are not later in life. To schedule a free consultation with Florida Medicaid planning lawyer Christine A. Schafer, call our office today at  954-999-9683. or contact us online.