If proper asset protection planning for nursing home care and estate planning are not done in advance, it can put your loved one at risk financially.
Entering a nursing home can provide provide peace of mind for your elderly parent. But if proper asset protection planning for the monies involved in nursing home care and estate planning are not done in advance, it can put your loved one at risk financially.
Especially for seniors on Medicaid, there are important considerations to take before moving into a nursing home. Many seniors own a home, and depending on what is done with a home before moving into the nursing home can greatly affect their assets. Before deciding on selling the family home or transferring it to a family member, it is critical to speak to a qualified elder care planning attorney.
Transferring a home can incur penalties unless the home is transferred to a spouse, disabled child, specific trusts, a sibling with an equity interest in the home, or a caretaker child. There are strict rules of how long siblings and caretaker children must have lived in the home prior to an individual going into a nursing home. If a transfer or sale of home is done incorrectly, it can hurt a person’s Medicaid eligibility. Also, the transfers can create a Medicaid penalty period that is equal to the value of the transferred asset divided by Maryland’s average pay rate for nursing home care, $6,800 per month.
After a loved one passes away and if the home is not properly accounted for, the state can come after an estate or put a lien on the home for benefits given for the senior’s care. Skilled Medicaid planning attorneys know how to protect assets, the family home, and keep loved ones from incurring unjust hardships.Tags: asset protection, maryland, medicaid, Medicaid penalty, nursing homes, state's penalty