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May 11, 2021

Medicaid Qualification And Asset Protection: All You Need To Know

What To Know About Protecting Assets While Qualifying For Medicaid

Did you know that nursing homes are among the biggest creditors you are likely to face in life? It’s true, and the average American is bound to bear this common financial burden at some point. The latest monthly costs calculated by the Genworth Cost of Care Survey for Orlando, Florida are truly staggering. Genworth estimates the median monthly cost at $3,700 for an assisted living facility and $9,125 for a semi-private room at a nursing home. The fact is, the main source of funding for most people will be Medicaid. In order to qualify for this service, certain things must be proven, regarding assets and annual income. Aubrey Harry Ducker Jr. along with other esteemed elder law attorneys have provided a useful resource to assist in this situation. Read on to discover terms of Medicaid qualification and asset protection strategies.

Medicaid Qualification and Protecting Assets

How To Qualify For Medicaid

Even though end-of-life care has become one of the largest bills one is likely to face, only about 10% of the population has long-term care insurance. As for the other 90%, it is expected that Medicaid will be the sole basis of footing the bill. However, Medicaid is a means and needs-based program. In other words, anyone who applies must meet specific benchmarks in terms of their ability to pay for care. This includes their personal assets and annual income, specifically. Varying by state, the individuals applying must prove that they have limited assets and low income to qualify.

Ensuring Medicaid Qualification And Asset Protection

In order to ensure your assets are protected and saved for your family, a trusted attorney is able to help. With practice and a basic understanding of the Medicaid asset protection process, you can guarantee this is done. There is a complex series or preparation, planning and finally strategy that your trusted attorney can use. In fact, this is vital for all middle-class Americans seeking asset protection. Professionals who work with seniors and their families can successfully avoid the potentially devastating costs of nursing home and long-term care. Through their asset planning tactics and knowledge of varying types of trust, attorneys such as Aubrey Law protect your family.

Helping Clients Qualify For Medicaid And Protect Their Assets

The rules and regulations for Medicaid change and adapt to the growing times and population. Because of this fact, it is important to always stay up to date in order to successfully plan for one’s clients. Aubrey H. Ducker Jr. was privileged to recently contribute to an educational resource available to all elder law attorneys. This latest continuing legal education program from the National Business Institute provides an overview of asset protection concepts and strategies. Using this practice-based source, Elder Law attorneys can legally and ethically protect assets while enabling earlier Medicaid eligibility. Also included is a set of crisis-management tools which will avoid and correct any unintended loss of benefits for clients.

Course Content And Agenda

The presentation of this information for Elder Law attorneys is invaluable and necessary through its 6-hour duration. Read through the summary of this legal guide in order to provide asset protection strategies and simultaneously ensure earlier eligibility for Medicaid:

Applying For Medicaid – The Four Eligibility Requirements
1hr, D. Rep DeLoach III

  1. Medical Eligibility: The Needs Assessment
  2. Resource Eligibility: Exempt vs. Countable Asset
  3. Income Eligibility
  4. Transfer Eligibility
    1. The Lookback Periods
    2. Transfers and Penalty Periods
      1. Transfer Penalty
      2. Penalty Beginning Date
      3. Partial Months of Ineligibility
      4. Minimum Monthly Maintenance Need Allowance (MMMNA) for the Community Spouse
      5. Annuity Transfer Rules and Tactics
  5. Estate Recovery Rules
  6. Current Medicaid Planning Programs and Rules

Pre-Need Asset Planning
1hr, D. Rep DeLoach III

  1. Medicaid Planning for Single vs. Married Applicants
  2. Transferring Real Property without Jeopardizing Medicaid Eligibility
    1. When Does the Home Become a Countable Asset?
    2. How is “Intent to Return Home” Interpreted?
    3. Titling of the Home and Basic Homestead Issues in a Medicaid Planning Context
  3. Life Estates
  4. Asset Valuation – Fair Market Value under DRA
  5. Using Life Insurance to Spend Down
  6. Interstate Transfers
  7. Protecting Veterans Benefits
  8. The Gifting Powers in Powers of Attorney

Crisis Planning And Assistance
1hr, Alice Reiter Feld

  1. Asset Purchase Strategies Available
    1. Purchases
    2. Payments
    3. Asset Transfer Strategies Available
      1. How to Transfer Residence to Caregiver Child
      2. Transferring a Residence to one’s Sibling with Equity Interest (Who’s Resided There for at Least One Year)
      3. How to Transfer Residence Subject to Life Estate
      4. Transferring Residence Subject to Occupancy Agreement
      5. Caregiver Agreement Between Parent and Child
  2. Contesting/Appealing the Penalty Period Dates and Other Adverse Medicaid Decisions

Trust-Based Medicaid Planning In Detail
1hr, Anné Desormier-Cartwright

  1. Choosing the Assets for Funding the Trusts
  2. Key Provisions and Sample Trust Language
  3. Self-Settled Trusts and Their Impact on Eligibility
  4. Using Income-Only Trusts
    1. Purpose of Using IOTs
    2. Principal Distribution Provision
    3. Taxation of IOTs
      1. Income Taxation and Tax Reporting
      2. Gift Tax and Reporting

Using Special Needs Trusts – Sample Trust Review
1hr, D. Rep DeLoach III

  1. When ‘Special Needs Trusts’ Can Be Used
  2. Drafting an SNT – Common Mistakes to Avoid
  3. Documenting the Assets Transfer into the Trust
  4. Choosing a Suitable Trustee
  5. Sample Special Needs Trust Document Review

Applied Legal Ethics
1hr, Aubrey H. Ducker Jr.

  1. Avoiding Conflicts of Interest (Who is Your Client?)
  2. Dealing with Clients’ Diminishing Mental Capacity
  3. Spotting and Preventing Elder Abuse
  4. Appropriate Client Communications
  5. Navigating through Family Conflict
  6. Setting and Collecting Attorney Fees

Aubrey Law

Our lawyers have been helping clients in matters of Family, Elder, and Probate Law since 1999. Struggling with probate issues, child custody or a recent divorce? If you are seeking legal advice contact the law office of Attorney Aubrey Harry Ducker Jr. Our offices handle all types of legal representation from Family Law to Elder Law. Call us today at (407) 647-7887 or send us a send us a message. Aubrey Harry Ducker Jr. Attorney at Law serves Altamonte Springs, Longwood, Maitland, Orlando, Oviedo, Winter Garden, Winter Park and Winter Springs and surrounding areas.