1. To think that it is too late to plan.
Even after a loved one has moved to a nursing home, you can still take steps to protect your assets. Since the cost of home care costs up to $ 7,000 per month, avoiding the protection of your assets can be very costly.
Decision. Schedule a meeting with a qualified senior attorney to discuss your situation and how to best protect your assets.
2. The provision of assets.
Adding a child’s name to a case for home or transferring money or other assets is too common a mistake. In accordance with the new Medicaid filing rules, which came into force in 2007, there is now a 5-year review period for any gifts or asset transfers. In addition, the return of assets can lead to a long period of disqualification.
Solution: Before giving away any assets, be sure to discuss your situation with a qualified senior attorney.
3. Assigning tax breaks to Medicaid.
Gifts of up to $ 12,000 are exempt from gift taxes. This exemption from gift tax, however, does not apply to Medicaid regulations. All gifts, even birthday or Christmas gifts, or gifts to a church or other charity, are subject to a five-year period looking back and result in a period of disqualification.
Decision. Once again, you should meet with a qualified attorney to make sure that you do not find yourself in a situation where you are not eligible for Medicaid benefits.
4. Inability to take advantage of spouse protection. Congress stipulated that a spouse still living in the community should not impoverish himself by paying for the costs of caring for the sick.
Decision. When meeting with an older law planning lawyer, it is important to discuss which legal strategies can be used to protect assets for a community spouse.
5. Failure to plan ahead.
Too many people do not plan to stay in a nursing home even after they have been diagnosed with a debilitating illness, such as Alzheimer's disease or dementia. With new changes to Medicaid rules, it is more important than ever to be prepared to apply for Medicaid in advance.
Decision. Meet a qualified senior attorney to discuss what precautions you should take so that you don’t lose your Medicaid eligibility.
6. Inability to prepare for the return of property.
Property recovery allows the state to seek reimbursement for Medicaid after your death. Now that a family member is receiving Medicaid benefits, it is also important to take steps to avoid real estate recovery.
Decision. Meet with a senior lawyer's attorney to discuss the best way to avoid real estate recovery in your situation.
7. Applying for Medicaid too soon or too late.
Proper submission time is very important. Since the average cost of a nursing home is more than $ 7,000 per month, registration too soon or too late can cost thousands of dollars.
Decision. Medicaid planning should be done only with the help of a lawyer who has considerable experience helping other people in situations like yours. An Elder's Certified Lawyer (CELA) or a member of the National Academy of Senior Advocates Lawyers (NAELA) is often a good indicator of his or her legal profession.
8. Not having a suitable power of attorney.
Implementation of any Medicaid planning often requires a power of attorney, since the resident of the orphanage is no longer competent to make any financial decisions. However, simply no power of attorney is enough. It is imperative that the power of attorney allow the type of planning that may be required. This may require the preparation of special trusts, the delivery or transfer of assets, the purchase of an annuity, etc.
Solution: When meeting with a lawyer of a senior lawyer, be sure to discuss the need for a suitable power of attorney.
9. Assuming home nursing staff can help with Medicaid.
The nursing staff is paid to take care of their loved one. They are not experts in Medicaid regulations. If you rely on their help, you may end up bypassing you or your loved ones thousands of dollars.
Decision. Make sure you are looking for expert help in applying for Medicaid by consulting with a qualified senior attorney.
10. Do not receive expert assistance.
Almost everyone knows someone who claims to know about Medicaid. However, with the Medicaid rules that are constantly changing the information that they know is most likely outdated. Medicaid is a difficult area of law, and it is best to consult with those who make a living helping clients in this area. With such a large amount, it would be foolish not to do that.
Decision. Do not use advice from well-designed friends and family members or the information you read on the Internet as the basis of your Medicaid planning. Consult a qualified senior attorney to ensure that you do not make costly mistakes.
