The Medicaid program is a welfare initiative. It helps low income families and children have the healthcare they need but cannot afford. For most of us however, Medicaid pays for long term care costs that we might not be able to afford. For instance in our later years if we need home health or go into a nursing home, etc. Medicaid foots the bill when we can't afford to do it ourselves. But there's a catch...
What that means for most people who need Medicaid is that they have to "spend down" their assets until they only have $2000 to their name. Gifting the assets usually doesn't cut it because Medicaid will count most gifts as disqualifying transfers and penalize you by specifying an amount of time for which you cannot qualify for benefits as a result of the transfer. Medicaid can look back up to five years to find disqualifying transfers- which is why it pays to plan early.
Another requirement for Medicaid is that to qualify you cannot earn more than around $800 total income each month. So, if you don't have any assets to live off of (or pass on to your family for that matter) and you can't have an income, it begs the question- how are you going to get by? How will you pay for anything besides your long term care? The answer is- most people can't; but there is good news. Medicaid requirements have a variety of exceptions and loopholes than can be planned around to help you avoid having to spend down your estate.
By planning ahead, you can receive the benefits you need without giving up your right arm to qualify. If you would like to discover your options to avoid Medicaid spenddown and plan for Medicaid benefits, call Inter Vivos, at (801) 477-1570. We can help you plan ahead and come out on top.