Medicaid Planning

Medicaid Planning

http://www.medicaidpatients.com/medicaid-planning/

Medicaid planning is done when elderly people arrange or transfer their assets to prevent or minimize their use of Medicaid for paying for their long term care. Many Americans think that they have a good chance of ending up in a nursing home. The cost for long term care such as nursing homes differs across the U.S., with $70,000 per year as an average estimate. Paying for this can easily deplete the savings or assets of a middle income American retiree in just a few years.  Not all allowances are spared from Medicaid claim though, and in order for them to be exempt they must be irrevocable, they must not cover a term longer than the purchaser’s life expectancy and the payments must at least be equal to the cost of the annuity, and payments must be made immediately, so a deferred annuity is excluded. Unless there is a spouse, a minor, or a disabled child, the state must be named as a beneficiary equal to the amount of Medicaid given.