Welcome to
Senior Resources & Benefits
Each year individuals spend millions of dollars on estate planning to ensure their estates, assets and heirs are protected from the threats of estate taxes, the probate process and administrative costs. Additionally, many people spend further sums on asset protection planning to protect themselves and their heirs from litigation and creditors' claims. During this entire time consuming and costly process, the individual and their planners are completely oblivious to the largest threat facing themselves and their estate:
Long-term care costs. Clients who have successfully benefited from SRB's services have had net worth from as little as $25,000 to as much as $3 million. Long-term care costs are costs such as nursing home costs, in-home health care costs, prescription medication expenses and medical expenses. Statistics compiled by the Federal government's Medicaid agency, the Centers for Medicaid and Medicare Services, reveal about 50% or 1 out of every 2 people require some type of long-term care during their lifetime. Most individuals suffering from Alzheimer's disease or other dementia related illness require care for almost 11 years while most non-Alzheimer's and non-dementia patients require care for a little over 3 years.
Many recent studies have shown the average monthly cost of care in a semi-private room in the Midwest to be approximately $4,200 per month. The cost of care at home as well as the cost of care in a private room in a nursing facility is much more. Prescription medications are often an additional $500 to $1,000 per month depending upon the individual's illness and medications prescribed. Due to the likelihood most individuals will incur long-term care costs and due to the fact those costs are extremely expensive, most people should incorporate benefit planning into their estate or asset protection plans.
Senior Resources & Benefits, L.L.C. ("SRB") are experts specializing in Medicaid, Medicare, Veteran ("VA") and Social Security benefits. Additionally, SRB offers asset protection planning and estate planning very different from other planners. It integrates benefit planning within the clients' asset protection planning or estate planning. Most asset protection or estate plans do not address Medicaid or other benefits leaving clients completely vulnerable to long-term care costs.
SRB offers two different types of planning being crisis planning or pre-planning. In crisis planning, SRB assists the client in analyzing his or her case under the appropriate rules, planning the case and taking the necessary steps to qualify the client for benefits immediately, even if the client is already in a nursing facility and even if the client has not done any planning previously. Proper crisis planning enables the client to qualify for benefits without having to wait any time period (i.e. 3 or 5 years) in order to qualify for benefits. Pre-planning is for those individuals who are not ill and will not be needing care until some time in the future, if at all. Many of these clients have already done their estate planning which is completely void of any benefit planning.
Pre-planning allows the client to incorporate benefit planning into his or her existing estate or asset protection plan. If the client has not done any planning, it allows the client to structure his or her estate or asset protection plan with the necessary benefit planning provisions.
Introduction.pdf
Introduction to Medicare, Medicaid
& Other Benefits
Proposed Changes to Medicaid
Being Discussed
Divorce Is Not Helpful
with Medicaid
Misunderstood.pdf
The Most Misunderstood
Rule In Medicaid
Medicare Prescription Drug
Coverage - Goodheadlines,
Limited Substance
Medicaid Recipients and Their
Families Keep Control
Opportunites and Pitfalls
with Care Agreements
Everyone Has a Nursing Home Plan
New Medcaid Law; Not so Fast
Schoavo Proved Need for
Living Wills and Power of Attorneys
Making Informed Decisions About
Medicare's Prescription Drug
Coverage
Medcaid's Income Test
Most Trusts Not a solution
in Medicaid Planning
Pitfalls of Medicaid's New Tranfer
Rules & the Gift Tax Annual Exclusion
How the Pieces Fit Together
"Estate, Asset & Medicaid Planning"
Medicaid Can Benefit Those Not in
Nursing Home
New Medcaid Law "What a Mess"
"Will vs. Trust"
Why People Do Medicaid Planning May Surprise You.pdf
When To Do Medicaid Planning
Why People Do Medicaid Planning
May Surprise You
"DPOA, ADHC"
Medicare vs Medicaid
Medicaid Changes - Clients Must Act
Immediately Before Its To Late
CPA Medicaid, Medicare, VA
and SD Benefits
Important Issues with Medicare's
Prescription Drug Coverage
When Doing Estate Planning, Don't
Forget the Disabled Individual
VA QUALIFICATIONS:
THE MODERN BANK ROBBERY
Medicaid Planning is Completely Legal
Myths Run Rampant in Medicaid
Advice
Eligibility
Veteran Administration
Estate Planning
Annual Gifts
Enrollment
Intestacy
VA Aid & Attendance
Client in Nursing Home
Part A
VA Basic Eligibility
Client Retains Control
Part A - Home Health
Dont's Spend Assets
VA Hospitals
Part A - Hospital
Medicaid Defined
VA House Bound Benefits
Part A - Hospice
Social Secuirty Disability
Medicaid Not Welfare
VA Long Term Care
Part B
Medicaid Planning is
Completely Legal
SSDI
VA Medications
Part C
SSI
The 5 Most
Misunderstood Rules
Part D
SSI Assets
Trust Not Helpful
SSI Eligibility
Types of Planning
SSI Income
When to Do Planning
Why Do
Medicaid Planning
The Anonymous Threat to Farmers,
Ranchers & Their Families
VA Benefits
What is a Power of Attorneys?
Living Wills - Why do I need one?
Intorduction to Medicare, Medicaid
and Other Benefits
Commonly Asked Questions
Introduction to SRB
SRB can customize any presentation to fit the needs of your clients and their families and your employees. If there is a particularly topic you would like us to present on your behalf please email us at benefits_srbllc.com. We partner with many businesses, Churches, Civic Clubs, CPAs, and other professional to education their client and families with creditable information at no charge.
Click on area for a list of the Community Partners in that area
Adress:
3517 W Owen K. Garriott Road
Suite Three
Enid, OK 73703
Tel:
800-407-9302
Fax:
580-234-5547
Crystal Pritchett:
cpritchett_srbllc.com
Jeremy Nichols
jnichols_srbllc.com
benefits_srbllc.com
2011-04-21_release authorization_srb.pdf
2011-04-21_retainer agreement.pdf
2011-04-21_document checklist.pdf
2011-04-21_questionnaire.pdf
Medicaid Advice
Medicaid is one of the most complex and confusing set or rules and regulations most professionals ever face. The Medicaid rules and regulations are always changing, often without notice.
One court said, "The Medicaid statute is an aggravated assault on the English language, resistant to attempts to understand it. The statute is complicated and murky, not only difficult to administer and to interpret but a poor example to those who would like to use plain and simple expressions." Another court stated, "As Medicaid has evolved, there has developed a degree of complexity in the Medicaid Act and particularly the regulations which makes it almost unintelligible to the uninitiated." Finally, a court said, "There can be no doubt that the Medicaid statutes are among the most completely impenetrable texts within human experience. Indeed, one approaches them at the level of specificity herein demanded with dread, for not only are they dense reading of the most tortuous kind, but Congress also revisits the area frequently, generously cutting and pruning in the process and making any solid grasp of the matters addressed merely a passing phase."
Unfortunately, all too often, clients and their advisors seek advice about Medicaid from the caseworkers in charge of evaluating Medicaid applications. What clients and their advisors do not know is they cannot rely upon the advice or recommendations of caseworkers. Most Medicaid caseworkers are good people with good intentions. They work hard at their jobs which involve administering many different programs including the Medicaid program.
Caseworkers either do not receive any training on the Medicaid rules and regulations, or they do not receive adequate training. As a result, caseworkers frequently misquote rules and regulations, and give erroneous advice to clients and advisors. Relying on advice from a caseworker can result in some very unexpected and serious consequences to the client. In some cases, caseworkers do know the rules but believe it their job to keep the client from qualifying for benefits. In those cases, the caseworkers intentionally mislead or refuse to help the client in receiving benefits. One client summarized it best by saying, "Taking advice from a caseworker is like asking an IRS agent to help you save on taxes."
Some clients are curious why their attorney did not discuss Medicaid planning with them. Medicaid planning is a highly specialized and very difficult area of the law. The Medicaid rules are a confusing combination of Federal and state law. Each state has a state Medicaid agency with a second agency administering Medicaid. Each agency has its own rules. To further complicate matters, the Secretary of Health and Human Services has the authority to waive provisions of the Medicaid statutes resulting state rules conflicting with Federal statutes and rules differing among states. In addition, many Federal and state procedural rules are not even documented.
An attorney practicing in this area learns the rules through the experience of handling cases. To remain updated on the latest rules and regulations, the attorney must handle a significant number of cases. Most attorney do not specialize in this area of the law. Clients must seek competent advice from a Medicaid attorney. Senior Resources & Benefits, L.L.C. ("SRB") uses the legal services of the law firm of Mitchel, Gaston, Riffel & Riffel, P.L.L.C. The law firm of Mitchel, Gaston, Riffel & Riffel, P.L.L.C. specializes in Medicaid. To learn more about this law firm, see the "Legal Services" item under the "Home" menu of this website.
Annual Gift
In trying to protect assets from long-term care costs (i.e. nursing facility costs, in-home health care costs, medical expenses and prescription medication costs), individuals sometimes try gifting assets to their children and grandchildren. They have often heard they can give a certain amount to each child or grandchild each year. These are annual exclusion gifts.
This rule is a gift tax rule and has no relationship to Medicaid. The rule says each person can gift up to a certain amount (i.e. $12,000 in 2008) to another person without any gift tax consequences. This rule is the old $10,000 per year, per donee rule. It allows each person to give $12,000 (2008) per year to another person. The donor can give as many annual exclusion gifts in a year as the donor desires. To the extent the total gifts in a particular year exceeds $12,000 to a person other than a spouse, the excess amount is consider a gift for gift tax purposes.
This rule has no bearing on an individual's Medicaid eligibility. In other words, this rule does not provide any protection or assistance in gaining Medicaid eligibility to an individual gifting asset. If an individual has gifted assets, the gifts must be analyzed under the Medicaid rules to determine if the gifts adversely affect the individual's Medicaid eligibility.
Many people have heard and therefore believe a person must do Medicaid planning prior to entering a nursing facility. This belief is a myth and wholly untrue. Although it is best to do Medicaid planning before a client enters a nursing facility, it is not required.
It is best to do Medicaid planning prior to entering a nursing facility because the client can save the most amount of money if the planning is done before entering a nursing facility. However, the individual can still save substantial amounts of money even if the client has already entered a nursing facility and is currently paying for care. Medicaid planning after entering a nursing facility will enable the client to prospectively qualify for benefits upon completion of the planning. In other words, once the planning is complete, Medicaid will start paying for the applicant's care even if the client was initially self-paying for care.
Clients Retain Control
Some people believe if they qualify for Medicaid benefits, they lose control of their case. In other words, Medicaid or the State tells them where they must reside and monitors the type of care they receive. This belief is entirely untrue.
The only difference between a person paying for their own care and Medicaid paying for the person's care is who is paying the bill. When a patient qualifies for Medicaid, the patient and his or her family still control the care of the Medicaid patient. The clients and client's family, not the State, selects the nursing facility for the individual, decides which medications the individual receives and handles all medical treatments. This makes common sense. If Medicaid or the State made these decisions, the potential liability would be enormous. Anytime a family disagreed with a chosen treatment, the State would have liability exposure. Therefore, all of these decisions for Medicaid patients are made by the patients and their families in the same manner and way private-pay patients make their decisions.
Most nursing facilities, especially those in rural areas, are Medicaid approved. Most nursing facilities cannot survive without Medicaid payments. Only those nursing facilities which are exclusively private-pay can refuse to accept a Medicaid patient. Generally, there are very few private-pay only nursing facilities with those facilities being located in metropolitan areas. In order for a nursing facility to receive Medicaid money, it is prevented from discriminating against a Medicaid patient in any way. If a nursing facility is Medicaid approved and has an available bed, it must take the Medicaid patient.
Most people in nursing facilities receive Medicaid; and yet, all patients receive the same level of care. Federal law prohibits a nursing facility from discriminating against a Medicaid patient in any way if the nursing facility is to receive Medicaid money. Not only will clients be allowed to retain or obtain health insurance of their choice, they will be encouraged to do so. As an incentive, Medicaid allows clients to deduct their health insurance premiums from any payment they may be responsible to pay the nursing facility. This practice puts another source of payment of medical costs before Medicaid.
Before a client qualifies for Medicaid, the assets and income of both the patient and spouse are considered in determining Medicaid eligibility. However, once an individual qualifies for Medicaid benefits, a separation under the Medicaid rules occurs which prevents Medicaid from controlling or monitoring the spouse's assets or income. After qualification, the spouse is free to do whatever the spouse wishes with his or her assets and income.
Don't Spend Assets
All too often, clients receive erroneous advice from their attorneys and Medicaid caseworkers as to how Medicaid works. One of the most erroneous pieces of advice involves the spending of assets.
Caseworkers and advisors often tell clients they must spenddown their assets in order to qualify for Medicaid benefits. Spenddown is a term of art. In other words, the term spenddown in Medicaid has a very specific meaning. It means assets must be used for the benefit of the client. In a married couple case, the assets may also be used for the benefit of the client's spouse. Spenddown does not mean the assets must be spent on long-term care costs (i.e. nursing facility expenses, in-home health care costs, medical expenses or prescriptions medications). The client may use assets to pay long-term care costs, but he or she is not required.
Instead, assets can be used in a variety of other ways to satisfy the spenddown. For example, countable assets may be converted into non-countable assets or converted into exempt assets. Alternatively, assets may be converted into properly structured income streams allowing for eligibility. Another example is the use of very specialized trusts to protect assets. In short, the underlying assets can be protected or preserved for the client and client's family while at the same time satisfying the spenddown requirements.
Some clients erroneously believe their total assets must be below certain levels such as $2,000. This is not true. A client's "countable" assets must be below these levels although the client may have considerably more "total" assets. A Tenth Circuit court stated, "A client's Medicaid eligibility is a function of the client's 'countable' assets and not a function of the client's total assets." The word "countable" is very important. There are many assets which do not count toward Medicaid eligibility if properly held or structured. As a result, clients may have substantially more assets than these very restrictive levels. This is why Senior Resources & Benefits, L.L.C., ("SRB") has been able to qualify clients with net worth of between $25,000 to as much as $3 million.
Medicaid is very different from Medicare. Medicare is a Federal insurance program administered by the Federal government to help pay medical expenses for persons over age 65 or those under age 65 and disabled. Medicaid is a Federal insurance program administered by the states designed to assist persons with long-term care expenses such as nursing home costs, in-home health care costs, prescription medications not covered by Medicare and medical expenses not covered by Medicare.
Medicare only pays for a portion of skilled nursing care while Medicaid pays for unlimited skilled nursing care. Additionally, Medicare does not pay for any nursing facility care while Medicaid pays for care in a nursing facility as well as in-home health care services. Medicare is entirely a Federal program funded with Federal funds and administered by the Federal government. Medicaid is a joint Federal and state program funded with both Federal and state funds and administered by the states. For every Medicaid dollar spent, approximately 70 cents comes Federal funding and 30 cents is from state funding. Medicare requires beneficiaries to pay deductibles or co-payments for medical care. Medicaid, however, pays the entire cost of medical care.
Medicaid is not welfare
Most people define welfare as the person receiving something for which he or she did not pay. Every single person who has worked during their lifetime has paid for his or her Medicaid benefit. The mid 1960's saw the advent of a number of social programs such as Social Security, Medicare and Medicaid. Upon creating these new programs, Congress levied two very burdensome taxes upon the working class being FICA and self-employment taxes. These taxes are the ones which consume approximately 15% of a person's income. Both FICA and self-employment taxes were created to fund Social Security, Medicare and Medicaid.
Prior to 1989, Medicaid was a welfare program in some ways. In the late 1980s, Congress recognized most middle-class Americans can afford long-term care expenses (i.e. nursing facility expenses, in-home health care expenses, prescription medications and medical expenses). As a result, in 1989, Congress passed the Medicare Catastrophic Coverage Act of 1988. This Act greatly overhauled and changed Medicaid. Today, Medicaid is not a welfare program but a Federal insurance program being used by many middle-class Americans to pay long-term care expenses. Medicaid planning largely resembles other types of planning such as tax planning. The net worth of clients who have successfully benefited from SRB's Medicaid planning has ranged from as little as $25,000 to as much as $3 million.
The typical net worth of SRB's Medicaid client surprises some people. They erroneously believe a client must be without any assets (i.e. less than $2,000) in order to qualify for Medicaid. This $2,000 rule is another reason some people believe Medicaid to be welfare. The $2,000 rule says the client's "countable" assets not his or her total assets must be less than $2,000. As the Tenth Circuit Court of Appeals stated, Medicaid is a function of the applicant's "countable" assets and not his or her total assets. Although a client's "countable" assets must be less than $2,000, there are many assets which do not count toward a client's Medicaid eligibility. Additionally, if the client is married, there are many assets which are set aside for the client's spouse even though they are countable assets.
Another reason some people erroneous believe Medicaid to be a welfare program is because of the way it is administered. The Federal Medicaid rules require each and every Medicaid application to be evaluated on a local county basis. Most state Medicaid agencies do not have an office in every county. Therefore, the state Medicaid agencies usually delegate the evaluation of Medicaid applications to the state's department of human services which administers a variety of social programs, many of which can be considered welfare programs. Although Medicaid is not a welfare program, it is sometimes confused as such because it is administered by the state agencies also administering some welfare programs. Today, most long-term care expenses are paid by Medicaid.
Any individual believing Medicaid to be welfare must believe the same about Social Security and Medicare. Each person pays FICA and self-employment taxes to fund all three benefits. Therefore, if the individual is not receiving Medicaid because it is welfare; presumably, the individual is also not receiving Social Security or Medicare benefits because they would also be welfare. Just because an individual may qualify to receive Social Security or Medicare, he or she does not have to take it. If the individual truly believes Medicaid to be welfare, the individual cannot accept Social Security or Medicare benefits without being hypocritical.
Medicaid Planning is completely legal.
It is planning with a client's income and assets to qualify for Medicaid benefits. Medicaid planning involves using the Medicaid rules and regulations to the client's advantage. It does not involve giving away assets. It involves reordering a client's assets to qualify for Medicaid benefits.
Medicaid fraud is illegal and not practiced by either Senior Resources & Benefits, L.L.C. or its attorneys, the law firm of Mitchel, Gaston, Riffel & Riffel, P.L.L.C. Medicaid fraud is the practice of hiding assets or refusing to report assets to the Medicaid agencies. Medicaid fraud has penalties not only for the client but also the planners involved in the case.
In 1996, Congress attempted to criminalize Medicaid planning. The Department of Justice later ruled the law to be unconstitutional and refused to enforce it. In 1998, a Federal District Court enjoined the Department of Justice from enforcing the new law. As a result, Medicaid planning is still a very legal and viable solution for most clients. Medicaid planning is a generally accepted practice. This fact is evidenced by caseworkers referring clients to the law firm of Mitchel, Gaston, Riffel & Riffel, P.L.L.C. for Medicaid planning. These caseworkers are the same caseworkers who work at the Medicaid agencies evaluating Medicaid applications and determining Medicaid eligibility of individuals. Additionally, many of the caseworkers and their families have retained the law firm of Mitchel, Gaston, Riffel & Riffel, P.L.L.C. to do planning for them.
In 2003, one Federal District Court stated, "Medicaid is a legal practice involving utilization of complex rules of Medicaid eligibility comparable to the way one uses the Internal Revenue Code to his or her advantage in preparing taxes."
The 5-year Rule is the most misunderstood rule in Medicaid.
Most people have heard about the 5-year look-back rule. Prior to February 8, 2006, the 5-year rule was the 3-year rule. In February 2006, Congress increased 3-year look-back period to 5 years.
The look-back rule provides the Medicaid agencies may review all transactions occuring within 5 years prior to the date the clients files a Medicaid. This rule does not mean clients must do their Medicaid planning 5 years in advance. It does not mean clients must do their planning 5 years before entering a nursing facility or 5 years before applying for Medicaid.
Clients do not have to do their Medicaid planning 5 years before applying for Medicaid. In ermergency or crises case, the client is already in a nursing facility or will be entering a nursing facility in the near future. In almost all emergency or crisis cases, the Medicaid planning is performed within a few weeks or even a few days of filing the Medicaid application. Although it is best to do Medicaid well in advance, the emergency or crisis planning is performed well within this 5-year period.
This 5-year rule is only a scope rule to guide caseworkers in reviewing Medicaid applications. It tells caseworkes which transactions they must review during the evaluation. In other words, if a transaction occurred more than 5 years before the filing of the Medicaid application, it is beyond the review scope of 5 years. The client does not have to report the transaction to the Medicaid agency and the caseworker does not have a right or obligation to consider it. If the transaction occurred within 5 years before the filing of the Medicaid application, the client must report the transaction and the caseworker must evaluate its effect on the client's Medicaid application.
Clients are still eligibility for Medicaid benefits and generally qualify for benefits even if they:
•Have gifted property 5 years before entering a nursing facility or 5 years before applying for Medicaid,
•Still own property and have failed to give it away 5 years before entering a nursing facility or 5 years before applying for Medicaid, or
•Have failed to do any Medicaid planning at least 5 years prior to entering a nursing facility or 5 years prior to applying for Medicaid.
Through proper planning, clients can protect a substantial amount of assets even on the eve of entering a nursing facility or applying for benefits.
Periodically, individuals having trusts will consult with Senior Resources & Benefits, L.L.C. These individuals believe they are protected because their previous attorney told them so. The question is protected from what?
Trusts, specifically, revocable trusts, inter vivos trusts, loving trusts and living trust are good estate planning tools. They effective pass the client's estate upon death. However, these trusts like most trusts do not provide any protection for the client or client's assets from long-term care costs. Most trusts do not help clients in qualifying for benefits.
Under the Medicaid rules, assets in both revocable and irrevocable trusts are considered available assets to the client just as if the client owned the assets himself or herself. As a result, Medicaid requires the assets of trusts to be spent before the client can qualify for benefits. There are some trusts which are used to qualify clients for benefits. However, they are very different from the typical revocable or irrevocable trust, are very unique and apply only in very limited circumstances.
There are two types of Medicaid planning. The first is preplanning of advance planning and the second type of Medicaid planning is crisis or "911" planning.
Medicaid preplanning is typically done when an individual or couple do not have any significant health issues. They currently do not need any long-term care (i.e. care at home, in an assisted living or in a nursing facility). However, they want to be prepared in the event they need care in the future. They know statistics show 1 out of every 2 people require some type of long-term care during their lifetime. The typical preplanning client is between the ages of 45 to 85 years old and not experiencing an significant health issues. Many of them either do not have children or others assisting them with their daily living or finances; or if they do receive assistance, they still participate in their care and finances. Some preplanning clients are still very active with many of them still be employed or participating in a business. Because most of them are very independent, they will attend the initial consultation by themselves.
A Medicaid preplanning case involves the client integrating their Medicaid planning in their estate planning. Medicaid preplanning does not replace estate planning. Medicaid preplanning is to protect the client and client's family if and when the client needs long-term care. Estate planning protects the client's family and estate upon the client's death. Medicaid preplanning and estate planning serve two separate and distinct functions. They do not address the same problems. The client should have both an estate plan and a Medicaid preplan.
Some preplanning clients may have already done estate planning with another attorney while others have not done any planning at all. Those who have already done estate planning with another attorney are simply adding Medicaid planning to their existing estate plan. It is very much like adding a room to a house. When an individual adds a room to his or her house, the individual does not bulldoze the whole house and start over. The individual simply builds the additional room and connects it to the house is such a way that it all functions together as one house. The same is true of Medicaid preplanning performed after an individual has already done his or her estate planning. In drafting the Medicaid plan, we simply review the existing estate plan and modify the estate plan to work seamlessly with the Medicaid plan. If the client has not done any estate planning, we will do their estate planning along with their Medicaid planning. It is slightly less expensive to do both at the same time.
The second type of Medicaid planning is crisis or "911" planning. This is where an individual suffers from an illness or condition which requires him or her to receive long-term care in the near future, or the individual is already in a nursing facility. The typical crisis planning client is between the ages of 65 to 95 years old and already experiencing some health issues and expecting to need care in the immediate future. Most of these clients have children or others heavily involved in assisting them with their daily living or finances. Most are not very active any more with many of them already in a nursing facility. In most cases, the client is unable to attend the initial consultation and his or her spouse, child, children, power of attorney, friend, or any combination of these, attend the initial consultation for them.
As discussed in the section titled "The 5-Year (3-Year) Rule", an individual can successfully do their Medicaid planning and qualify for Medicaid although he or she has done their Medicaid planning within five years of needing benefits. As further discussed in the section titled "Client in Nursing Home", an individual already residing in a nursing facility can qualify for Medicaid benefits. Although crisis Medicaid planning does work, it is a solution of last resort. People should consider doing preplanning for two reasons. First, it is less expensive to do preplanning than to do crisis planning. Preplanning will cost the client approximately one-half to two-thirds the cost of crisis planning. Second, preplanning is being performed at a time when the client is healthy and does not need care. Crisis planning is being done at a time when the client is getting ready to enter the nursing facility or already in the nursing facility and the family is under much more pressure. The family is having to deal with a myriad of issues from medical decisions to money. In addition, they are spending approximately $4,000 to $5,000 per month on care before the client gets qualified for Medicaid.
When to Do Medicaid Planning
Most people should consider doing Medicaid planning when doing their traditional estate planning. Most clients will do the traditional estate planning earlier in life to protect against the threat of an unexpected death and wait until later in life to consider Medicaid planning. Although it is best to do Medicaid planning as earlier as possible, Medicaid planning can be done at the last possible minute. In some cases, the client or client's family does not consider Medicaid planning until there is an illness or real possibility of needing long-term care. The problem with waiting until the last possible minute to do Medicaid planning, is the Medicaid can be less effective if done later than earlier. The earlier a client does Medicaid planning is usually better because it will give the person more flexibility in his or her Medicaid plan.
