People enjoying their golden years often hope to remain independent and stay in their homes. Some older adults enjoy the blessing of good health throughout their retirements. They remain capable of managing their own affairs and may live independently until they pass.
Others are not quite so fortunate. Medical issues may leave them dependent on others for basic daily needs, such as getting dressed or showering. Some people have family members who can manage their support needs later in life. Even those with children and grandchildren may eventually require professional support.
Many older adults choose to ignore the possible need for long-term care support until they cannot manage their affairs independently anymore. Planning in advance is typically the best option for older adults concerned about their support needs and long-term care costs during their golden years.
Medicaid requirements are strict
The Medicare coverage that working adults and their spouses receive during retirement has numerous limitations. Medicare does not cover long-term care costs. People without enough money in savings to cover their long-term care expenses usually need to apply for Medicaid. They must prove that they meet strict standards regarding their countable assets and current income.
Any transfers or gifts that occur in the five years before a Medicaid application can affect an older adult’s eligibility for benefits. They may face a penalty if they transferred property to a trust or gifted resources to family members in the 60 months before they apply for Medicaid.
Planning in advance helps make coverage accessible to people who have just had a stroke or who broke a bone when they fell. Advance long-term care planning also helps preserve resources after the Medicaid beneficiary dies.
Most of the time, the Medicaid estate recovery program asks for repayment for benefits from the estate of the Medicaid beneficiary. Planning that occurred at least five years before a Medicaid application can protect savings and home equity from liquidation after a Medicaid recipient dies.
Working with an estate planning and long-term care planning lawyer can help people address the significant expenses associated with medical decline later in life. Adults with plans can feel more confident about their access to support as they age.