While some people are lucky enough to be able to afford healthcare through the entirety of their lives, many people will struggle to pay their long-term healthcare bills after retirement. Fortunately, for some people, Medicaid planning can help to cover these expenses and ensure you are able to afford your care without going bankrupt. Here are five potential benefits you may get as a result of Medicaid planning:
- You can gain access to Medicaid benefits you normally would not be able to get
- Typically, Medicaid benefits are restricted to those below a certain maximum income and a certain amount in personal assets. Medicaid planning allows you to get around this by placing your assets in a Medicaid Asset Protection Trust, also known simply as a Medicaid trust. Any assets you place in a Medicaid trust are not counted towards the value of your assets, meaning you may be able to qualify for Medicaid when you might not have before.
- You do not need to sell off your personal assets
- All too often, when people face unexpected medical expenses later in life, they wind up selling off their personal assets until they qualify for Medicaid. Through Medicaid planning, you can instead qualify for Medicaid benefits by placing your assets in a trust, rather than selling your personal belongings. This will ensure you can retain your personal belongings, and not need to worry about becoming destitute to pay for your medical care.
- You can be protected from taxation and debt collectors
- One interesting facet of a Medicaid trust is that any assets you place into the trust are protected from taxation and debt collection. This means you do not need to worry about your assets being seized or taxed while it is in the trust. It also means that Medicaid planning can protect your personal assets, even if you are behind on your bills or are dealing with unpaid taxes.
- You can ensure your assets will pass on to your loved ones
- When you pass away, it is important to know that your loved ones will receive the things you leave to them in your estate plan. Medicaid planning can ensure your estate passes onto your heirs, without getting eaten up by medical expenses or other bills. You worked your whole life to provide for your family, so taking the extra step to ensure your money and property stays in your family is a good idea.
- You can be secure in knowing you will get the care you need
- With the aid of Medicaid planning, you can be certain that your long-term healthcare needs will be taken care of. However, the sooner you start planning, the better, because the state has implemented a two-and-a-half year “look back” period that could penalize your Medicaid benefits if you don’t prepare soon enough. That is why you should speak to a lawyer with experience handling estate planning issues, including Medicaid planning, who can make sure you are ready for what life may throw at you.
The estate planning attorneys at David J. Lorber & Associates, PLLC will work with you to come up with a plan that protects your interests and ensures that you and your loved ones are taken care of. For comprehensive estate and elder law services in New York, call David J. Lorber & Associates, PLLC at (631) 750-0900 or contact us online to schedule a free consultation at our Setauket office.
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