Medicaid rules are complicated. Add to that complexity the limited training the state provides caseworkers and you have a recipe for financial disaster. Even if you think your situation is “simple” trying to figure out the best solutions on your own puts you and your estate at financial risk. We offer a free COMPLIMENTARY Estate and Financial consultation and will review the general financial options that are available, should your family decide to pursue the Medicaid Application process. At the end of the day you will know what we can protect for your family and the attorney fees to go forward with this process.

Medicare the federal health insurance program for people who are 65 years of age and older, certain people under age 65 who are receiving Social Security Disability Insurance, and people with End-Stage Renal Disease. Medicare’s coverage is limited to 20 full pay days and an additional 80 co-pay days. After those days one will be required to pay the nursing home full cost each month. The cost could run $75,000 or greater per year in a skilled nursing facility.

This will not WORK. The state looks at all gifts you’ve made within the five years before you applied for Medicaid. This is known as the “Five Year Look Back”. If you give your children your money, home or other assets for less than fair market value this is determined a “divestment”. Medicaid will impose a penalty. This penalty is based on the amount of money or property you gave away therefore you may be required to self-pay, so you will have to ask for the gifts back. Pre-planning for asset protection will avoid or greatly reduce the impact of the Five Year- Look- Back period, reducing the impact on your estate.

A Prenuptial Agreement only works to keep property separate in the event of death or divorce. For Medicaid eligibility purposes, a prenuptial agreement does not keep your property separate. Medicaid will consider the assets owned by either spouse available resources.

A Will describes how assets will be distributed after death. While residing in a skilled nursing home you are still alive. The Will is not yet effective. If you have a revocable living trust the assets in that trust are not protected against Medicaid. The trust is transparent and all the assets are reachable to pay nursing home expenses.

For most families, their home can be their largest asset. The myth that Medicaid expects you to sell your home to qualify for financial support is not true. In Texas you can keep your home. Selling the home is not necessary. This can be an expensive mistake. You can transfer to your spouse by creating a Lady Bird Deed, which works well for single or married applicants.