It’s hard to gear up for the unpredictable. When it comes to “eldercare” planning, medical bills can be difficult to predict, with some conditions requiring ongoing care. At Geyer Law, an important aspect of our work is helping clients qualify for benefits through Medicaid, which is a federally mandated, state-administered health care program. Since the Medicaid system is quite complex, the challenge is finding a plan that works for those clients who cannot afford to self-pay and who meet the financial eligibility requirements of Medicaid…
In deciding eligibility for Medicaid benefits for those 65 of age and older, the Indiana program administrators are going to consider a number of factors:
- age
- income
- assets
- marital status
- medical need
In Indiana, there is a five year “look-back” period, meaning that beginning the day you apply for benefits, all assets and transactions that have occurred during the previous five years will be considered. All transfers of assets over $1,200 a year (through a gift or a sale) by either the applicant or his or her spouse will be examined. A transfer of assets which could have been used to pay for care costs will result in a penalty period during which the state will not assist in paying for long term care costs because the applicant gave away funds which could have been used to do so. There are no transfer penalties imposed for transfers between spouses.
In working with clients to meet the eligibility requirements for Medicaid, the elder law attorneys at Geyer Legal Group, PC will explore different ways in which Medicaid allows seniors to qualify for benefits, including:
- Miller Trusts (also known as Qualified Income trusts). These are irrevocable trusts, the funds in which can only be used for paying medical expenses, and are required when an applicant’s gross income exceeds the income cap in Indiana.
- Asset Spend Down (making repairs, additions, and modifications to the home, prepaying funeral expenses, paying off debt.)
It’s everyone’s wish to live a long, happy, and healthy life, but reality is often different from the dream. The complexity of the laws affecting government benefits for the elderly, not to mention the constant changes in those laws, present an enormous estate planning challenge.
– by Rebecca W. Geyer
