WHAT YOU DON’T KNOW CAN HURT YOU!… OR COST YOU YOUR ESTATE!
We are passionate about saving a family’s hard earned assets and not impoverishing a well spouse when someone’s health starts to fail! We hope you continue to check our blog to learn more about the many kinds of asset protection you may wish to be aware of!
Extremely wealthy families do not worry about Nursing Home Care costs, but most middle classed family facing the prospect of a loved one needing long-term care can be in a panic in deciding how to pay thousands of dollars each month for nursing care.
It is possible that a family with moderate income, savings, IRAs, a home and some other assets with legal planning quickly qualify for Medicaid Benefits (Medi-Cal in California) to pay part or all of the cost for skilled nursing home care.
It is very important to get the advice of an experienced elder law attorney for ANY Medi-CAL planning. You can legally qualify for the federal and state Medi-CAL Program by gifting assets into a Medi-CAL Asset Protection Trust. An elder law attorney can help with strategies can use to make sure you can qualify for Medi-CAL Long Term Care Benefits.
In this blog series, we will give a brief overview of these stacked gifting strategies.
1. Stacked Gifting is only allowed in California
California is the only state left in the US that has not adopted the Deficit Reduction Act, and this means that stacked gifting is still legal and allowed by Medi-CAL as long as it is completed in a specific way. This is very tricky and should be guided by a California Elder Law Attorney. But this allows families with considerable assets to move them into a special Irrevocable Trust and quickly qualify for Medi-CAL LTC.
- Proper Spend Down… Assets Can be Gifted
Many ill-informed social workers or staff in the care community tell clients their assets or money in spend down phase must being spent down for Medi-CAL eligibility needs to be applied to care costs. NOT TRUE! Medi-CAL is does not demand money be spent for care! Medi-CAL wants proof the potential Medi-CAL recipient’s resources reduced to less than $2,000 according to its stack gifting rules and that is proven to be fair market value. This needs an elder law attorney to make sure you legally transfer assets so there is no Medi-CAL penalty or possible capital gains problem.
In order to qualify for Medi-CAL more quickly, you may want to use some of the “spend down” money to pay off mortgage, buy a new car, payoff credit cards, or fix up the house. Then you can GIFT the rest of money over the limits into a Medi-CAL Asset Protection Trust!!
Do not let a senior care employee ever tell you that you must pay them for nursing care in spend down to qualify for Medi-CAL…this is NOT TRUE!!!
3 Prepaid Funeral Expenses is Another Legal Spend Down
Federal rules allow a person on Medi-CAL to keep up to $1,500 for funeral expenses. California allow an applicant to buy a prepaid funeral plan with additional costs such as the burial plots, caskets and vaults, which raises the limit.
This is it for this blog… stay tuned for more critical information about Medi-CAL Planning!
If you can’t wait…Take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.
For more information go to www.la-lawcenter.com or call us at:
Local Phone: (818) 241-4238 or
Toll Free Phone: (877) 537-8283