Top Six Medicaid Application Mistakes
A sad fact of life is that many elderly people will wind up in a nursing home because they do not have family that lives close to them or there is no one around to care for them. Either way, it can cost almost $100,000 per year to live in a nursing home, and Medicare does not pay for it, which means the elderly person and his or her family will wind up footing the bill. You can rearrange your finances so that Medicaid winds up paying for the nursing home care your loved one will receive. However, you need to avoid the six common Medicaid application mistakes discussed here so you put yourself in a good position when the time comes.
Handing Out Assets Too Early in Life
There is one thing to plan ahead of time and then it can be too early to start handing out your assets to your adult children. Moving assets too early can lead to tax implications that you do not want to face and other problems with your adult children. Do not forget, these are your assets and your home, no one else’s.
Thinking It’s Too Late to Plan
It is never too late to plan when it comes to dealing with Medicaid. There is still time to plan after your loved one has been moved into a nursing home. When you tell yourself that there is no time left to plan, mistakes are made and opportunities are lost.
Applying for Medicaid Too Early
You can apply for Medicaid too early and this will have a negative impact on your loved one. The earlier you apply for Medicaid, the more likely it is that your loved one will experience an ineligibility period. This can wind up costing thousands of dollars.
Applying for Medicaid Too Late
At the same time, you can apply for Medicaid when it is too late. This does not mean you will be denied coverage from Medicaid, but instead you will wind up missing a couple of months of benefits. You could also see assets and other savings be depleted because you waited too long to apply for Medicaid.
Ignoring Safe Harbors
Congress has created safe harbors for Medicaid planning, which means not every asset transfer will be labeled as Medicaid ineligible. For instance, transfers made to adult caretaker children, disabled children, and certain siblings are all exempt. Any money you deposit into a trust for a disabled person under the age of 65 is also exempt.
Not Taking Advantage of the Spend-Down Rules
There are spend-down rules in place when it comes to Medicaid planning and many people fail to take advantage of them. You can use your money to make upgrades to your home, get rid of any debt, buying a new car and even pre-purchasing funeral plans.
Contact Giro Law Today
Do you have concerns about applying for Medicaid? Are you worried you might make a mistake on your application or during the planning process? If so, you need to speak to an experienced Medicaid attorney in New Jersey. Call the office of Giro Law at (201) 690-1642 to schedule a consultation today.