Do you plan to rely on Virginia Medicaid to cover the costs of a nursing home? Too many assets or too much income can disqualify you from receiving Medicaid Long-Term Care to cover the expenses of a nursing home or home nursing care. Instead of transferring assets to others and surrendering control over them, you should consider a Medicaid Trust. This financial Medicaid planning tool can preserve much of your estate for your loved ones and help you meet Medicaid’s low asset limit. But you should begin your Medicaid Long-Term Care (LTC) Planning now.
Medicaid Asset and Income Limitations
Virginia Medicaid has stringent asset and income limitations that must be met in order for a person to enjoy long-term care benefits. The basic provisions are as follows:
A single individual in Virginia applying for Nursing Home Medicaid in 2023 must meet the following criteria:
1. Have income under $2,742 per month.
2. Have assets under $2,000, not including the primary home if a spouse will live in it while the person receives nursing home care.
3. Require nursing home facility-level care.
Too many Virginians rush to divest themselves of assets before the feared “five-year lookback period” and make serious mistakes. Before you take any steps in Medicaid LTC planning, consult with a seasoned Virginia Medicaid LTC Planning Attorney at Promise Law to get the facts. We can show you some effective tools to help you protect your assets while shielding them from Medicaid asset calculations.
Irrevocable Trusts and Medicaid LTC Planning
Trusts are legal tools that hold assets for the benefit of designated persons or entities. Different types of trusts have different terms and limitations. Not just any trust can shield your assets from Medicare and preserve them for your loved ones. For example, a revocable trust can be changed by the person creating it, and its assets are counted when determining Medicaid eligibility.
An irrevocable trust cannot be changed after it has been created. Most irrevocable trusts used for Medicaid LTC planning structure the provisions so that income is generated for you and your spouse but the principal cannot be touched. When you die, the trust assets belong to your beneficiaries. If you need nursing home care, the trust income is used to help offset the costs.
This type of trust protects the assets being counted toward your Medicaid asset limits. Of course, you cannot access the trust assets for any other purpose in an irrevocable trust. This is true even if you suddenly need them for something else. We recommend keeping a financial safety net available for such eventualities.
Advanced Planning for Medicaid Long-Term Care
It must be noted that funding an irrevocable trust must still be accomplished before the five-year look-back period. Creating a trust within that period before applying for Medicaid can result in a period of ineligibility in which you must wait longer to receive any needed Medicaid benefits. Promise Law can help you with advance planning for Medicaid Long-Term Care now to prepare for your future.
One of many seniors’ most serious mistakes is not starting their LTC planning early enough. It’s never too early to begin planning for your future. Promise Law in Newport News helps you get started with a FREE virtual Medicaid LTC Planning Workshop. Estate Planning and Elder Law Attorney Geneva Perry gives this virtual presentation and reveals the most critical issues in LTC planning and how you can get started now.
There is no obligation to partner with us for LTC planning after you view this workshop presentation. We simply want you to have the facts. Register today for this informative and helpful virtual workshop and begin planning for a more secure future today.