As you get closer to the age of retirement, you may look more into programs like Medicaid. You know the cost of aging may spiral out of control faster than you realize, and you want to make the transition easier and affordable.
The CPA Journal explores common Medicaid planning questions you may have. Learn about eligibility and requirements before you need nursing home care.
Differentiating Medicaid and Medicare
A federal insurance program, Medicare helps pay for the cost of medical care for those over 65. The program comes with restrictions regarding how long the person stays in the hospital, when the person enters a skilled nursing facility and whether a physician orders the received treatment. Medicaid, on the other hand, helps cover the price of living in a nursing home.
Understanding the Medicaid needs assessment
To determine Medicaid eligibility, applicants must undergo a needs assessment. The assessment looks different depending on the person’s marital status. Some assets receive exempt status during the assessment, such as personal property, irrevocable burial accounts, business property and retirement accounts.
Breaking down planning options for personal residences
Sometimes, those entering a nursing home wish to keep their primary residence and need to safeguard it from the Medicaid eligibility lookback period. With an irrevocable living Medicaid asset protection trust, the home becomes re-titled to the trust, passing on to a named relative upon the trust creator’s death. The life estate arrangement allows a person to record and execute a deed that maintains and reserves the use of the residence for life.
By learning more about Medicaid planning, you could save yourself a lot of time and energy in the coming years. You deserve peace of mind in your golden years.