The average lifespan is close to the highest it’s ever been in the United States. With more and more people living into their 80s and 90s, planning for long-term care is crucial. That’s why it’s important to consider Medicaid planning as part of your estate planning journey in Oklahoma City. This allows you to protect your assets while still ensuring you get the care you need as you age. Our team of Oklahoma estate planning lawyers at Entz Burton & Associates is here to help—call us at 800-633-7230 to set up a consultation with our team of sought-after estate planning attorneys in Oklahoma immediately.
Millions of people use Medicaid long-term care services every single year. People utilize these services in long-term care facilities or community-based settings. Some even receive care at home. The cost of long-term care varies significantly from area to area, and even within the same area, there are major disparities. For example, the difference between having a private room or sharing a room can add thousands to your bill each month. Extensive planning is required for the protection of your assets.
Why Medicaid Planning is So Important
Few things are more expensive than your long-term healthcare needs. As the average lifespan increases each year, those expenses only increase. Without adequate planning, an entire lifetime of assets and income can be depleted within months to fund the cost of your nursing home or assisted living facility. The fact is that this often affects middle-class individuals the most; low-income individuals don’t have assets to tap into for their long-term care needs, and high-income earners know how to protect their assets and keep them out of Medicaid’s hands. That’s why, regardless of your income level or the value of your assets, you should take steps to keep more of your hard work in the hands of your loved ones.
Long-Term Care Costs and Planning Ahead
The federal government does everything it can to avoid paying for care that individuals can pay for themselves. Before Medicaid will kick in, you must prove that you are considered impoverished. This means having less than $2,000 of assets and less than $2,829 in monthly income as a single person. The limits are different for married couples.
However, this doesn’t just apply to your current assets and income. Medicaid also has a look-back period. This refers to the five years before your application. Anything you transfer during that look-back period may result in a penalty period. Anything you give away or sell at less than market value is something that could have been used to pay for your long-term care. For example, if you sell your home at half its market value to your children three years before applying for Medicaid assistance, resulting in a $20,000 loss for yourself. Assume that the average monthly cost in Oklahoma is $4,000. The penalty period would be $20,000 divided by $4,000, resulting in a five-month penalty before you can use Medicaid for long-term care. It’s crucial to navigate these Medicaid regulations carefully, especially considering the implications of the look-back period. Consulting with an Oklahoma estate planning attorney can help ensure you make informed decisions that protect your assets and eligibility for Medicaid assistance.
Estate Planning Strategies
This means that you can’t start planning for Medicaid immediately before applying. You have to be looking more than five years in the future to protect your assets from being used against you. There are numerous ways to use your assets to benefit yourself and your family. For example, an irrevocable trust would mean giving up your control over your assets. However, a trustee of your choosing can still access the trust and use it to support you. You may also use assets above and beyond what Medicaid permits to tackle allowable expenses. There are numerous ways to ensure that a lifetime of work isn’t washed away in a matter of months, but you must begin planning as early as you can.
Choose an Experienced Estate Planning Lawyer in Oklahoma for Your Long-Term Care Planning Needs
At Entz Burton & Associates, we understand that everyone has different goals for their long-term care needs. You’ve worked hard your entire life to provide a legacy for your children and beneficiaries. Let us help you protect it and put it to work for you. Get started now by setting up a consultation with our team. Just give us a call at 800-633-7230 or contact us online.
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