MEDICAID PLANNING | TEXAS MEDICAID LAWYERS
Effective Texas Medicaid Planning Strategies May Help You Retain Your Assets
Advanced Medicaid Planning is probably one of the most important aspects of any estate planning. If your estate planning documents do not help you reach Medicaid eligibility without requiring you to spend down all your life’s savings, then there is something amiss with your estate plan.
Your medicaid attorney can help you protect your assets several ways, for example:
- A Miller trust, sometimes called a qualifying income trust, is a set of instructions applied to the person’s checking account. Any personal income over the monthly limit is sent to the trust to preserve Medicaid eligibility.
- You can gift of up to $12,000 per year per heir without triggering gift taxes. This is an key strategy for gradual transfer of assets to children. Keep in mind though – transfers within a five year look back period will disqualify or delay the donor’s Medicaid eligibility. If a stay at a nursing home is several years away, make sure that gifting complies. If some assets have already been transferred, your lawyer can minimize the divestment eligibility penalty – and retain up to 60 percent of remaining assets plus what Mom or Dad gave away.
We have heard of stories of people the finances of whom have been wrecked beyond repair due to the enormous amounts they spend for the hospitalization and medical care of the ailing members of their families. But, thanks to Medicaid Planning, long-term medical care is now available in Texas and families can ensure to have asset protection for medicaid. This means that they need not become poor for giving appropriate medical treatment to their ailing members.
Elderlaw attorneys throughout Texas have advanced experience managing the estate planning process for people concerned about Medicaid eligibility.
Lawyers know what assets are exempt from consideration in Texas when applying for Medicaid. Including your family residence, a prepaid burial plot and one car, but only if the applicant spends their assets down to a level named the Protected Resources Amount (PRA). If set up right, you can keep a reasonable amount of assets and regular income – and still qualify for Medicaid.
A Texas Medicaid Attorney is able to assess your eligibility by evaluating your income and assets. And provide effective Medicaid planning to help you or your loved one qualify. If you find yourself outside the five year look back window – the lawyer can help you structure annual – tax exempt gifts to each child. This allows you to slowly transfer assets to your children over a period of time.
If you have been denied Medicaid coverage, and are asked to pay nursing home expenses out of pocket, you might be able to save a portion of your assets by having the Medicaid application – and your assets reviewed by a qualified elder law attorney. They will look at your asset levels, monthly income any prohibited gifts or asset transfers. In many cases – we are able to make changes to your estate plan, or mount a successful appeal of the denial of Medicaid benefits.
In 1965 Medicaid was introduced but, during the early days, it covered only the needs of poor people and more particularly, children, because the intention was to provide only basic healthcare. A lot of changes have happened since then and the Plan that is now in vogue provides a more pervasive long-term health care. The Medicaid Plan has been expanded to nursing homes, private homes, assisted living facilities and other settings of similar nature.
One of the salient features of Medicaid Planning is that the financial criteria for applicants are very restrictive. But, at the same time, it is wrong to assume that every benefit will be available to all the Medicaid recipients because the plans come with certain eligibility criteria.
Consult The Experts Because Medicaid Rules Are Complex
You should seek the guidance of an expert for your Medicaid planning strategies because you may find that the rules and the eligibility criteria of the plans are highly complex. If you hesitate to seek such a guidance, you may be forced to spend huge amounts for getting a good care from a nursing home whereas an attorney who is an expert in elder law medicaid planning may help you suitably to protect your savings and also to get long-term health care.
Further, every state has its own laws governing both the benefits and the eligibility requirements and the expert you consult will plan your Medicaid as per the prevailing laws of the state in which you live. If you leave the State of Texas to live in another state, you may have to make suitable changes to your Medicaid Planning. Likewise, if someone shifts to Texas, they should also make the necessary changes to their plans.
Devising Suitable Strategies Is Important
People may desire to have long-term healthcare according to their needs and also the nature of their impairments. A few people may wish to have it at a nursing home and a few others may opt for facilities like Assisted Living or Private Homes. Whatever may be the wish or needs of these people, if they ensure to devise proper Medicaid planning strategies, they can have appropriate long-term health care.
There are two categories in Medicaid and they are the long-term health care and the other care. In the latter category, general diagnostics, general treatments and preventive medicine as well as surgeries are taken care of. But, in the case of long-term health care, the entire nursing home costs, all the charges levied by Assisted Living facilities and expenses that may be incurred for the care of individuals in private homes are covered. Irrespective of the category, all the applicants must fulfill the financial eligibility criteria but, those who may seek long-term health care must demonstrate that they cannot live independently.
There Are Genuine Ways To Ensure Asset Protection
Many people have a wrong notion that in Medicaid Planning, assets will be hidden to get the benefits. But, on the contrary, hiding assets or giving false information while filling the Medicaid applications will be viewed seriously. It is by maximizing the CSRA and the income allowances of the spouse and by changing the countable resources that are in excess into items that are exempt, the clients are helped to have asset protection for medicaid.
From this, it is very much evident that with the help of attorneys who are experts in elder law medicaid planning, people can avert financial wrecks by obtaining Medicaid for providing long-term health care to their loved ones. But, they should seek the guidance of experts and professionals because the rules and eligibility criteria are quite complex.