** This article has been revised from its original version which was published on December…
When you or a loved one are in a nursing home or assisted living facility, the rising costs can make you feel like you are drowning. Fortunately you have not missed the boat on protecting at least part, if not all, of your assets.
A common Medicaid Planning Mistake occurs when people assume that it is too late to develop and implement a strategy to obtain Medicaid and protect their assets. This assumption is usually made when a loved one has already entered a nursing home or assisted living facility. This is simply not true.
It’s NEVER TOO LATE to take planning steps. Perhaps, one of the Medicaid exceptions to the Medicaid transfer penalty apply in which case all the assets can be protected or a partial gift/promissory note strategy is available which can save part of your assets.
Unfortunately, many misinformed people simply continue to pay the nursing home costs until they are bankrupt and then Medicaid can kick in. Although this passive strategy works to qualify for Medicaid, you will have given all your assets to the nursing home instead a loved one or charity. Further, you will have no assets to supplement your care and quality of life, not to mention your own burial.
Waiting until the last minute to create a plan is definitely not ideal, but failing to plan because you think it is too late is a mistake that can cost you your life long savings.
I will be providing over the next few months additional Medicaid Mistakes, but more importantly, solutions to qualifying for Medicaid while protecting your assets and income.