Medicaid Planning

Orlando Elder Law Attorney

As our family members enter into their elder years, the realization starts to hit -the value of an estate that took decades to build can be obliterated by nursing home costs in a few years. Rather than passing on assets to loved ones, the assets must be liquidated to pay for nursing home costs, assisted living costs, and health care costs. However, this is not how it has to be. With sufficient advance planning, families can often preserve assets and become eligible for Medicaid when the time comes. However, if not done appropriately, Medicaid will still not be an option and the family will be required to spend down assets - i.e. pay for nursing home costs out of family assets, until they are eligible.

At Pierce & Associates, we provide knowledgeable advice and guidance to families with questions regarding Medicaid planning and elder law. Whether you come to us years before a Medicaid need arises or come to us when you are attempting to place your family member in a home, we will provide straightforward answers and advice based on your particular situation.

Understanding Medicaid

For eligible participants, Medicaid can cover costs of assisted living, nursing home care, health care costs, and prescription drug expenses. However, participants must be income/asset eligible. Under current rules, in order to be eligible for Medicaid, one must not have assets exceeding $2000. However there are exemptions in Florida:

• The home may be exempt from counting as an asset if the individual expects to return to the home (especially if other family members are living in the home)
• The automobile may be exempt if the individual expects to return and use it following short term care
• Other exemptions

As experienced elder law attorneys, we advise clients about strategies that are effective in Medicaid planning. However, many of these options are only available several years before becoming eligible for Medicaid. For example, recent gifting of assets to children is not acceptable under Medicaid eligibility guidelines. "Look back" provisions from Medicaid will encompass any gifts or contributions made in the previous five years and those gifts will be counted in determination of eligibility for Medicaid.