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Leading estate planning and elder law attorney Bobbi Thury has spotlighted several common misconceptions about nursing homes and assets.
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"Mistruths of what happens to assets when someone enters a nursing home are all too familiar," said Thury, Co-Founder of Legacy Law Firm, P.C., in Sioux Falls, SD. "These myths often result in hard-earned assets being poorly protected or completely unprotected."
One misconception is that a person in a nursing home can give away $15,000 per person a year without receiving a penalty. "This is confusing for many as $15,000 is the limit for the federal gift tax exemption allowance and does not have anything to do with applying for Medicaid."
Medicaid gifting rules differ: you will be penalized and not qualify for Medicaid benefits for some time if any gifts you make are considered divestments.
Many elderly people mistakenly assume that purchasing a "Medicaid-friendly" annuity will be a robust asset protection plan. Thury said: "Getting a Medicaid pre-planning annuity isn't what it used to be.’’
“Changes in Medicaid laws at federal and state level mean annuities are often no longer helpful in planning and qualifying for Medicaid. They can be detrimental, especially if you get one that Medicaid doesn't consider a ‘Medicaid-qualified’ annuity."
The attorney added: "The downside to many annuities on the market is that they are regular deferred annuities which are not "Medicaid-friendly." Many annuities have limited options for qualifying for Medicaid and can narrow the scope of protected assets if you are in a nursing home."
Another myth is that the state will seize assets when someone goes into a nursing home. "You don't have to hand over anything to the state," Thury said. "In other words, Medicaid won't dispense any money until you 'spend down' your countable or available assets. If you're not married or your spouse is already in a nursing home, the amount to spend down is anything over $2,000."
People who didn't have an asset protection plan before going into a nursing home often think it's too late to get one. Thury said: "It's never too late to protect your assets. You can still qualify to receive Medicaid benefits even if you have been using private funds to pay for nursing home expenses.''
"That being said, the sooner you start planning for your life care planning needs, the better situated you will be when that time comes. But before acting, seek advice from an experienced elder law attorney as they can offer advice on the regulations surrounding what you can and cannot do with your assets."
Source: http://RecommendedExperts.biz
Contact Info:
Name: Bobbi L. Thury
Email: Send Email
Organization: Legacy Law Firm, P.C.
Address: 7404 Bitterroot Pl, Sioux Falls, SD 57108
Phone: 605-275-5665
Website: https://www.legacylawfirmpc.com
Release ID: 89077039
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