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Medicaid Planning
Asset protection is particularly important when the legal issues involve the elderly and their families. Protecting the assets that a senior citizen or elder has accumulated over his or her lifetime must be balanced against the escalating costs of long-term care and medical expenses that most elders face in our nation today.
Medicaid Planning as a Factor in Asset Protection Strategy
Medicaid planning asset preservation is a major component of the area of legal practice known as elder law. Elder law focuses on those issues which affect the elderly and their families. For example, in the event you or a loved one requires long term care, there are several questions that may come to mind. Financial concerns arise: How best should money be spent? How should investments be protected? Who is responsible and when for the sometimes skyrocketing nursing home or home health care expenses?
This can be an extremely difficult time for the family, and obtaining qualified legal counsel is the first step in preserving assets and making a best case financial scenario for the individual requiring care, and, if married, for the spouse.
Medicaid as a Provider of Long-Term Care Coverage
Nursing home facilities are costly. Long-term care policies can help defray some of the cost; however, in most cases this cost, will be paid privately, as Medicare and most medical insurance policies do not cover long-term care. The Medicaid program is a government-run provider of long-term care coverage.
Specifically, Medicaid is a joint federal/state program that helps to pay for medical services for needy and low income persons. Each state is allowed to structure its own program within the federal guidelines. Medicaid rules are constantly changing. A number of major changes which became effective November 1, 2007, make it even more important to receive qualified counsel.
The Three Prong Test for Medicaid Coverage
In addition to being a U.S. Citizen or resident alien, there are three tests to qualify for Medicaid coverage for nursing home benefits:
1. Medical Needs Test. The applicant must be in need of nursing home care.
2. Income Test. The applicant’s monthly income (from all sources such as social security, pension, annuities, etc.) must be below a state set income cap. If the applicant’s income is over the cap, an attorney can help them create and fund a Qualified Income Trust (QIT) in order to obtain eligibility.
3. Asset Test. The applicant and spouse must also pass an asset test. The asset limits change each year and vary by state. In certain circumstances some assets will be exempt. If the applicant or spouse’s assets are over the limits, an Elder Law attorney may be able to recommend ways to protect additional assets.
How Can Medicaid Help You and Your Loved Ones?
Each family situation is unique and should be evaluated by an elder law attorney before taking any action. The Farr Law Firm is honored to have elder law attorney Jennifer R. Howell in its ranks. Mrs. Howell is Charlotte County’s only Florida Bar Board Certified elder law attorney. Board Certification is the highest level of recognition by The Florida Bar of the competency and experience of an attorney. As an elder law attorney, Mrs. Howell is available for consultation, preparation of documentation, and assistance through and including the application for Medicaid benefits.
Would you like additional information concerning Florida elder law or issues involving senior citizens or elders -- specifically asset protection or Medicaid planning? Would you like to schedule a consultation with Board-certified elder law attorney Jennifer R. Howell?
If you wish to confer with Jennifer R. Howell, please feel free to call the Farr Law Firm office number (941) 639-1158 to schedule an appointment, or you may directly contact her legal assistant, Sue Elgersma, a Florida Registered Paralegal, at (941) 505-9965 or by email at: selgersma@farr.com. Mrs. Howell welcomes your interest and is honored to have an opportunity to serve you and your family of loved ones.
If the Farr Law Firm can be of service to you or your loved ones in the protection of assets, please feel free to contact the firm to schedule an appointment at (941) 639-1158 (Punta Gorda office) or (941) 460-9334 (Englewood office). It is our honor to serve you.
