04 Aug
Older adults on the cusp of retirement and those already enjoying their golden years may eventually require daily medical support. Their needs may make it impossible for them to live alone without the assistance of professionals.
Some retired adults can age in place in their homes with the help of home health aides or in-home nursing support. Others may eventually relocate to a nursing home or similar long-term care facility. Even those who have saved for retirement may not be able to afford the cost of assisted living or in-home nursing support with their personal resources.
Unfortunately, Medicare does not cover long-term care costs. People may need to apply for Medicaid to afford the support they require as they age. Advanced planning is critical, as Medicaid benefits can drastically alter the legacy left behind when an older adult eventually passes.
Medicaid tries to recoup all benefits paid
Medicare provides benefits to most retirees who have worked for a living. Dependent spouses could also qualify for benefits based on their working spouse’s employment history. Medicaid benefits are only available to those who qualify based on need.
People applying for Medicaid must meet strict financial limits. They must submit to a review of all of their major financial activity over the prior five years. Their countable assets could also prevent them from qualifying.
The primary residence of the applicant is one of the only valuable resources that they can exempt from consideration when applying for Medicaid. Their home and any other valuable property could be vulnerable to estate recovery efforts after they die.
Federal law and state rules mandate Medicaid estate recovery efforts. The Medicaid estate recovery program can seek repayment from the estate of the person who received benefits by filing a claim in probate court. Medicaid estate recovery efforts can lead to the sale of the decedent’s primary residence and the liquidation of any residual property that they owned.
Planning well in advance before seeking Medicaid benefits can help applicants qualify quickly. They can also protect their assets from the state recovery efforts. Particularly in cases where people want to pass their home equity to their romantic partners or progeny, advance Medicaid planning is of the utmost importance.