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In February of 2006, President Bush passed into law the "Deficit Reduction Act of 2005," which changed the way Medicaid works in several significant ways. Under the new law, when a person applies for medicaid, the medicaid agency asks whether there have been any gifts over the last five years. Prior to the change in law, the agency looked back three years except with regard to certain trusts. If there have been gifts, the applicant may be disqualified for medicaid. The length of time they will be disqualified depends on the amount of the gift. The bigger the gift, the longer the disqualification. We have various strategies in place to assist with protecting a lifetime worth of assets from being totally spent on long term care and nursing home costs. Protecting assets is not simply to make sure children have an inheritance. It is to protect spouses and insure that a loved on on Medicaid is able to get things Medicaid does not pay for, or does not pay for in a timely manner. The new law is extremely complicated and full of planning pitfalls, and if you have a loved one in a nursing facility, it is imperative that you talk with a professional regarding Medicaid planning. If you have recently retired, please see us. We have ways of
protecting your house from being counted as an asset by Medicaid during
life or after death. Did you know the State of Ohio will try to place
a lien on property after you die if you have used medicaid services?
Usually the house is the first asset the State will try to attach. But
if you set up a trust to protect your house, you will not have to worry
that it will be attached. AND we have Medicaid proof trusts that will
allow you to be in control of your home and continue receiving your
current tax deductions! |
