For many senior residents, the cost of medical care and services is a big issue. Many elderly Americans turn to the Medicaid program for help.
Although the Medicaid program is mainly moneyed by the federal government, each private state administers their own program. Since the private states run their own Medicaid programs, the eligibility requirements might differ somewhat from one state to the next. In all states, nevertheless, there are both income and resources limitations that use to all applicants. An applicant who has earnings above the limitation or who has actually resources valued above the limitation will be denied Medicaid benefits. For many senior applicants who are dependent on a fixed income, the earnings limitation may not be an issue. The resources limitation, on the hand, can be a bar to benefits.
In many states, the resources limitation is as low as $2000. For an elderly individual who has actually worked all his or her life to purchase a home or reserved something for the golden years, a $2000 limit on possessions can be an issue. Just signing over properties to a member of the family will not work due to the fact that many states have a “recall” period. Any possessions moved during that duration– as long as 5 years– need to be revealed on an application or it could be thought about Medicaid scams.
There are legal estate planning tools that can be used to help a senior individual qualify for Medicaid without losing all of his/her possessions, however cautious planning is vital to prevent being accused of Medicaid scams. Not just will an application be rejected if it looks like though an applicant is hiding assets or not being forthright about possessions, but criminal charges for Medicaid fraud could likewise be levied against the applicant.
If you think that you may require Medicaid protection in the future, put in the time now to talk to your estate planning attorney about how to structure your estate in a way that will certify you for the program without triggering you to lose the properties you have worked your whole life to acquire.