When you require long-term care in Florida, Medicaid can help cover the costs.
Many people have misinformation about how this assistance works. It is crucial to dispel any misconceptions to plan for your financial future.
1. You can give away assets to meet the qualifications
When you apply for Medicaid, there is a look-back period of five years. The government assesses this financial history as part of your application. Any assets you gave away during this time count against your eligibility. You may also receive penalties for trying to bypass the rules, making you ineligible for a specific timeframe.
2. Your income is too high to qualify
If your gross income exceeds the Medicaid limit, you may still obtain benefits by establishing a qualified income trust. When you set up and fund this trust correctly, you can earn a higher income than the cap and still qualify for assistance.
3. The state of Florida will take your home
Although the state becomes a creditor when you access Medicaid, your homestead property is not subject to your creditors during probate. You can sign an “intent to return” statement if you move into a nursing home, keeping your property exempt. If the state believes you will be living in a nursing home permanently, they can file a lien to collect reimbursement when you sell your house.
It is essential to understand the rules, requirements and limits of Medicaid to create an effective plan that helps you cover the costs of long-term care needs. Utilizing planning tools and advice from knowledgeable professionals enables you to design a comprehensive estate plan.