Unfortunately, nursing homes are very expensive, and even people with a good retirement income may not be able to afford the monthly cost of care. For many nursing home residents, that means relying on Medicaid to help with their expenses.
Medicaid rules and eligibility can be confusing, and residents and their families often worry about the estate recovery process. Our Medicaid planning lawyers in Naples can help you devise strategies to protect your assets while remaining eligible for Medicaid assistance.
Our team at the Siegel Law Group, P.A., has over 100 years of combined experience in helping our older population age with dignity. Call today to set up a free consultation and find out how our elder lawyers in Naples can help with your Medicaid planning.
How Can an Attorney Help With Medicaid Planning?
If you or a loved one anticipates admission to a nursing facility, you should plan ahead as much as possible. Our lawyers can help you understand Medicaid eligibility and the application process, as well as come up with strategies to protect your assets.
An elder law attorney can explain your options and draft documents such as trusts, life-estate deeds, and wills. It is especially important to consult with an attorney if you have significant assets or a spouse who will remain in the community.
Early planning is the key, and many families make the mistake of waiting too long to put the necessary legal tools in place. Our Medicaid planning attorneys in Naples understand complicated Medicaid rules and can guide you through the process.
For a free legal consultation with a medicaid planning lawyer serving Naples, call 561-955-8515
What Is Medicaid?
Medicaid is a health insurance program for people with low income and certain disabilities. Both federal and state governments fund it, and it covers medical services, including long-term care.
Each state runs its own Medicaid program with its own rules, and Florida has specific eligibility requirements and guidelines.
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Who Is Eligible for Medicaid in Florida?
To qualify for Medicaid in Florida for nursing home or long-term care, you must:
- Be over the age of 65.
- Be a Florida resident and receive care within the state.
- Meet income limits, which change yearly. An attorney can help determine if you qualify based on your current financial situation.
- Meet asset limits, including restrictions on savings, property, and other resources.
- Have a medical need for skilled nursing care, as determined by Florida’s CARES assessment of long-term needs.
If your assets exceed the allowable threshold, you may need to spend down your resources before becoming eligible for Medicaid.
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What Does It Mean to Spend Down Assets?
Spending down your assets means reducing your total countable resources, such as cash, savings, or investments, to meet Medicaid’s asset limits. This helps you qualify for benefits, especially for long-term care like nursing home coverage.
If you have significant savings or liquid assets, you might be able to use them to cover the difference between your income and the cost of care for some time before needing to apply for Medicaid.
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How Does Medicaid Estate Recovery Work?
Medicaid Estate Recovery is the process through which the state seeks reimbursement for Medicaid benefits paid on a recipient’s behalf. In Florida, this can include claims against the estate, such as the home, bank accounts, and other property.
Recovery typically occurs after the death of the Medicaid recipient. However, Florida law protects certain heirs, including a surviving spouse, minor children, and disabled dependents, from estate recovery.
To help safeguard your assets, it’s important to consult with our Naples Medicaid planning lawyers. Legal tools such as trusts and permitted asset transfers can reduce or avoid potential estate claims..
What Is the Look-Back Period?
When you apply for Medicaid, the state doesn’t just consider your current assets. It also reviews your financial history over the past five years. This is called the Medicaid 5-year lookback period.
During this time, any transfers or gifts made below fair market value may trigger a penalty period, delaying your eligibility for benefits. This doesn’t mean you can’t sell or transfer assets; you just need to do it correctly.
An experienced Medicaid planning attorney can guide you through this process, help you understand the rules, and devise strategies for gifting, spending, or repositioning assets without jeopardizing your eligibility.
What Happens if You Incur a Medicaid Penalty?
Dispersing assets in violation of Medicaid rules doesn’t permanently disqualify you from receiving benefits. However, it can trigger a penalty period during which you are ineligible for Medicaid coverage.
In Florida, the penalty is calculated by dividing the total value of the improperly transferred assets by the state’s average monthly cost of nursing home care. This results in the number of months you must wait before Medicaid will begin covering long-term care expenses.
Early planning and the guidance of an elder law attorney can help you avoid mistakes that could result in a lengthy Medicaid penalty.
How Can You Protect Your Assets from Medicaid?
Common tools your attorney may recommend to protect your assets from Medicaid recovery while remaining eligible include:
- Irrevocable Medicaid Trust: This can protect your assets from being counted for Medicaid eligibility if it is established at least five years before applying for benefits.
- Life Estate Deed: This document can transfer ownership of your home to an heir or family member, with the agreement that you have the right to occupy the house for life.
- Spousal Transfers: You may be able to transfer assets to a community spouse without triggering a penalty.
Get Help from a Medicaid Planning Attorney in Naples
For many families, nursing home admission is an option they would prefer to avoid. However, medical needs sometimes warrant skilled nursing help on a 24/7 schedule. But living in a nursing home shouldn’t mean losing everything you’ve worked for your entire life.
As a taxpayer-funded program, Medicaid will try to recoup costs through the estate recovery process. But there are legal ways to protect your assets, and it’s smart to take advantage of them. Our Medicaid planning attorneys in Naples can help you understand your options.
At the Siegel Law Group, P.A., we’ve advocated for the rights of older Floridians for over 20 years. Contact us today for a free consultation and find out how we can help with your Medicaid eligibility concerns.
Call or text 561-955-8515 or complete a Free Case Evaluation form