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Why Is Medicaid Planning Necessary?
There are a few reasons why Medicaid planning should be on your to-do list!
- Nursing homes are expensive, and you may need one.
In Pasadena, the average cost of a semiprivate room in a nursing home is around $5,600 per month, or around $67,000 per year. That amount is more than most seniors, who are on fixed or low incomes during their retirement years, can reasonably afford. The current data is showing that about 70% of seniors will need long-term care at some point during their lifetime.
- Medicaid has resource and income limits.
Medicaid is a form of government financial aid that can cover these costs, but you have to qualify in order to receive benefits. Because the needs-based program is designed specifically to assist low-income individuals, there are strict requirements on how much you can have in terms of assets. Most seniors find themselves in a tough position of having too much money to be eligible, but not enough money to afford nursing home care – they’re stuck if they aren’t able to find a way to qualify.
- The alternatives are disastrous.
When we say “stuck” – we mean there are essentially three options without Medicaid’s help. The first is that you can’t enter the nursing home, and will have to stay with your family, who may have to rearrange their schedules and lives to accommodate you or pay for in-house care, which can be very expensive. The second option would be to pay for nursing home care out of your own life savings or by selling your assets, which can be devastating emotionally and which may mean that you have no inheritance to give to your children and grandchildren when you pass away. The third option would be to have your family struggle to pay for your nursing home care, which would make you feel like a financial burden.
None of these are good options. Medicaid is the best way to pay for the care you will likely need!
What Exactly Does Medicaid Planning Entail?
Even if the reasons for Medicaid planning or clear, the process itself is something that most people are unfamiliar with, and it can be difficult to understand. Basically, it involves working with an attorney to legally shield the assets in your name from being “counted” on your Medicaid application.
There are various tools, with the most frequently used being trusts, that can shelter your assets outside of your name. There are ways to convert asset types from “nonexempt” to “exempt”, including annuities and more. There are certain ways you can pre-spend your assets (a pre-paid burial plan, etc.) for things you actually need. You can gift your assets in certain ways to your spouse or children as long as you do so within a certain time window. All of these strategies and more are designed to ensure that you or your beneficiaries still have access to your hard-earned wealth, but that it is protected from ruining your eligibility for Medicaid.
How Our Pasadena Medicaid Planning Lawyer Can Help You
At The Law Office of Michelle E. Murphy, our lead Pasadena Medicaid planning lawyer has over 20 years of experience explaining Medicaid planning options to seniors in Texas and their families so that they can feel confident in their choices and in their care plan. Michelle E. Murphy will take the time to listen to you and to handle all of the paperwork (including the complex application process). Don’t wait until it’s too late to plan ahead; call now to schedule your free consultation and take your next steps!
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Ms. Murphy made sure to use all of her resources and did everything legally possible to help me. She fought harder than other lawyers out there and found ways to make everything work in my favor. I really appreciate how she helped me and made me feel at ease under the worst circumstances. I recommend her highly.
Why Choose Us?
20+ Years Of Experience
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