When the time comes to qualifying for Medicaid there are many common mistakes. Knowing the medicaid mistakes to look out for is going make the process easier and much less stressful for you.
Here are the top 8 mistakes people make with it comes to medicaid qualification:
1. IGNORING THE NEED TO PLAN WILL MAKE THE PROBLEM GO AWAY.
Recent Legislative changes make earlier proactive planning more important than ever.
2. GIVING AWAY ASSETS TOO EARLY
First, it’s your money (or your house, or both). Make sure you take care of yourself first. Don’t put you security at risk by putting it in the hands of your children, precipitous transfer can cause difficult tax and Medicaid problems as well.
3. IGNORING IMPORTANT SAFE HARBORS CREATED BY CONGRESS
Certain transfers are allowable without jeopardizing Medicaid eligibility. These Include: transfers to disabled children, caretaker children, certain siblings and into trust for anyone who is disabled and under age 65; a transfer to a “pay-back’ trust if under age 65; and a transfer a pooled disability trust at any age.
4. FAILING TO TAKE ADVANTAGE OF PROTECTIONS FOR THE SPOUSE OF A NURSING HOME RESIDENT
These protections include the purchase of an immediate annuity, petitioning for an increased community spouse resources allowance, and in some instances filing a spouse refusal.
5. APPLYING FOR MEDICAID TOO EARLY
This can result in a longer ineligibility period in some instances.
6. APPLYING FOR MEDICAID TOO LATE
This can mean the loss of many months of eligibility.
7. NOT GETTING EXPERT HELP
This is a complicated field that most people deal with only once in their lives. Tens of thousands of dollars are at stake. it’s penny-wise and pound foolish not to consult with people who make their living guiding clients through the process
8. THINKING IT’S TOO LATE TO PLAN
It’s almost never too late to take planning steps, even after a senior has moved to a nursing home.