Do you have a loved one who will likely need long-term care in the years to come? Many Texas residents end up in this position, but they often lack the funds they need to pay for this type of care — which can cost thousands a month. The state offers something called a Ladybird deed, which may help those needing LTC to afford it.
Typically, when a person goes to apply for Medicaid for long-term care needs, the government can look back five years to see what assets he or she had, or moved, in order to qualify. This means, if LTC planning is not done early enough, one’s Medicaid application may be denied. Of course, planning too soon once resulted in people having to leave their homes and live with relatives just to make it look like they lacked assets.
What is a Ladybird deed? This deed allows a person to essentially give his or her home to an heir but retain the right to remain living there until the need for LTC arises. This means that it is an asset that will not count against him or her when applying for Medicaid, but it is not something one has to completely give up prematurely either. This gives people the dignity of being able to remain in their own home up until they really need to be moved to an LTC facility.
Medicaid planning for long-term care needs takes time and some creative thinking. The Ladybird deed is usually just one small part of a bigger plan that will ensure Medicaid eligibility and asset and estate preservation. If you and your loved one are interested in Medicaid planning for potential LTC needs, now is a good time to speak to legal counsel about your options. To learn more about Ladybird deeds and other Medicaid planning strategies available to Texas residents, please take a moment and visit our firm’s website.