Estate planning and elder law matters often dovetail nicely. Older adults who consider how they may be vulnerable as they age can make plans that protect their resources and optimize the legacy they leave when they die.
Long-term care planning is often part of that process. Specifically, older adults may need to plan in advance to ensure that they are eligible for Medicaid or are otherwise able to cover the costs associated with long-term care. Medicare does not cover in-home nursing support or a room in a nursing home.
People never know what may happen to their health as they age, making advance planning for Medicaid eligibility particularly important. Not only does planning for Medicaid help people qualify for benefits when they are medically vulnerable later in life, but it can also help them to preserve more of their resources for their chosen beneficiaries.
Medicaid expects benefit repayment
When older adults require long-term care benefits, they have to prove that they qualify. The state Medicaid program looks back at five years of financial records to determine if the individual’s countable assets and income allow them to qualify for Medicaid.
The home where the person lives is among the limited resources that do not affect their eligibility. However, it may be vulnerable to recovery efforts after the Medicaid recipient passes. The Massachusetts Medicaid estate recovery program pursues repayment for all benefits distributed to an older adult in need of long-term care.
The estate of the Medicaid recipient may need to repay the value of those benefits by liquidating assets intended for specific individuals. Even the home where the decedent lived could be vulnerable to estate recovery claims.
Therefore, it is beneficial for those who may eventually apply for Medicaid benefits to make critical financial moves at least five years before they apply. They can change how they hold key resources to make it easier to qualify for benefits and to protect those assets from recovery efforts after they pass.
Planning well in advance can make a major difference for those who want to preserve resources for the next generation. Making the right financial decisions and estate planning moves before submitting a Medicaid application can help people qualify for benefits and protect their resources.