The only thing about this area of the law that you can count on is that the rules will change. In fact, Congress implemented dramatic and sweeping changes to the Medicaid rules in February of 2006. This new law is significantly more complex than the prior law, but opportunities to protect yourself and your assets in the event of a nursing home stay still exist. With proper long-term care planning, there is no problem strictly complying with the law. Full disclosure of all transfers, gifts, and divestments can be done with peace of mind.
There are many variables to consider when approaching this area of planning. Slight nuances in these variables may require the use of a number of different planning strategies. The best approach is to have your care paid by insurance. The sooner you investigate what is offered, the more options you will have and the less it will cost you in the end. The biggest mistake most people make is to wait until they're too old or too ill to qualify.
Clients often come to us with the following questions:
- If I give my house to my children, will it be protected from the nursing home?
- If I give away assets, do I have to wait 36 months until I go into the nursing home?
- If my spouse goes to the nursing home, will I have to spend all of our money?
- Will my revocable living trust protect my assets from nursing home costs?
- What would happen to our house if both of us had to go into the nursing home?
- Can the nursing home kick me out if I run out of money?
- Is it illegal to give my assets away to qualify for Medicaid?
- What options do I have to protect and control my assets?
