It is great that American seniors are living longer than ever before, however, this also means that many will eventually need long term care. Unfortunately, these necessary services are very expensive and can quickly deplete one’s entire life savings. If you need long term care, it can negatively affect your estate and eliminate any potential inheritances you wanted to leave for your children.
The good news is that Medicaid can cover these medical costs, but it has strict rules regarding income and asset limits. As such, many people in Missouri cannot qualify for Medicaid and are forced to pay out-of-pocket for these services. This can be financially devastating for families. However, an estate planning attorney may be able to help you. Medicaid planning is a proactive form of estate planning where you can qualify for Medicaid benefits while also protecting your assets, even if your income and assets exceed the typical eligibility limits.
How Medicaid Can Help You Pay For Health Care and Services
Medicaid is a government assistance program managed by the Department of Social Services that offers financial support for health care costs and services. Most elderly Americans will eventually need long term care services and/or end of life care. All senior citizens aged 65 and older are eligible for Medicare, a federal health insurance program that covers many medical visits and expenses. However, do not be fooled into think you are all set if you have Medicare coverage! Medicare does not provide any assistance for long-term care needs, such as nursing home stays, assisted living facilities, home health aides, or visiting nurses. Medicaid will cover these long-term care costs, but eligibility is based on financial need, so you must demonstrate that you have limited income and assets in order to get coverage.
What Could Happen to Your Estate if You Do Not Have Medicaid?
If you or a loved one requires a nursing home care or around the clock care, the financial expenses can be exorbitant. Without Medicaid coverage, you will be responsible for paying out of your own pocket for the care. Paying for these services can quickly drain savings, health care saving accounts, retirement accounts, and other assets. If you don’t have enough money to pay, or if you eventually get to the point where you have gone through all your money, a nursing home could try to go to court to require you to sell your house or other assets to collect payment for your bills.
Legal and Financial Strategies to Protect Your Estate in Missouri
Your life and estate could be in trouble if you do not have the proper Medicaid coverage and an estate plan. The Missouri Medicaid planning attorneys at Mark Harford Law can determine the best legal strategy to help ensure you get the care you need while still protecting your assets. Various legal strategies we have used to get successful results include:
- Establishing a Medicaid Asset Protection Trust: A a type of irrevocable trust to hold on to some of your assets so you will be able to meet the Medicaid eligibility requirements
- Spend Down Cash or Assets: Spending down your assets may help you qualify for Medicaid, but it could also potentially affect any inheritance you may want to leave behind
- Gift Making: Eliminate some of your cash on hand and assets by gifting them to your children or beneficiaries a
- Life Estate: Establishing a life estate to your children or heirs will allow you to stay in your house for the rest of your life and you may be able to still qualify for Medicaid
- Transfer Titles: Transfer titles of assets to your children or beneficiaries
Always check with a Medicaid planning attorney before you take any step.
Start Medicaid Planning Now in Order to Protect Your Estate in Missouri
You have worked too hard all your life to simply lose everything you worked for. At Mark Harford Law, we work to give you the legal assistance you need to give you the peace of mind knowing that your assets are protected. Contact us today to schedule a free consultation.