As an Elder Law Attorney, I am always looking for opportunities to educate my clients about important aspects of financial planning, especially when it comes to Nursing Home Medicaid and Veterans Aid & Attendance benefits. This Asset Management Awareness Month, I want to highlight the significance of effective asset management in the context of these crucial programs.
Understanding Asset Management
Asset management is often vital when looking to fund a stay in a skilled nursing facility. The average cost of long-term care in Texas is between $3,000 and $4,000 each month (Source: TX Gov). Medicaid or Veterans Aid & Attendance (VA A&A) are rightfully available to you and your loved ones to cover the cost of skilled care. No matter what your assets might look like, speaking with a licensed attorney who has experience filing these applications can help you and your loved ones maintain your assets, guarding them for generations.
As you might know, both Medicaid and VA A&A require applicants to meet certain asset and income limits to qualify for these services. Here are some aspects to consider in regards to eligibility and asset management:
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Look-back periods: Both programs will look back over the last 3-5 years to ensure you did not give away any land, vehicles, or sums of money over $200. This seems like a trivial rule, but Medicaid and VA are trying to deter folks from making gifts for the sole purpose of qualifying for these programs. If you have made large gifts, speak with an attorney right away so that these gifts can be explained or penalty periods can be calculated.
The look-back periods are really important because we see a lot of clients who believe they cannot own a home and receive Medicaid benefits—this is untrue. Wait to sell the home until you’ve spoken with an attorney who works on Medicaid every day. Discussing the best options for the family home leads us to the next important aspect—asset limits.
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Asset Limits: Assets can be defines as any real property, pensions, IRA’s, 401(k)s, funeral policies, and similar accounts or contracts that hold cash value as well as potential sale value. Each asset has its own unique set of rules concerning how they are calculated against eligibility for Medicaid and VA Aid & Attendance. Recently, many clients come to us with the intent of setting up a trust; however, trusts aren’t always the best solution for each individual case.
Yes, we create trusts for many clients (especially our Veterans), but we also counsel our clients on avoiding probate through other means. Probate can be avoided when assets are transferred at the time of death—this is done with specific deeds for property and POD (payable on death) or TOD (transfer on death) designations on accounts held at financial institutions. Avoiding probate can even yield unexpected benefits if or when medicaid planning comes into play. Ask us how you can take steps to make things easier on your family and heirs through probate avoidance.
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Income Limits: A;though March is Asset Management Awareness Month, not INCOME Management Awareness Month; however, we won’t leave you in the lurch. There are certain designations, trusts, or even rules allowing you to divert, or set aside portions of your income to your spouse or dependent child. Our attorneys and paralegals stay up to date on these rules and limits as they change annually.
The Role of an Elder Law Attorney
Navigating the complexities of Medicaid and Veterans Aid & Attendance eligibility can be daunting. An experienced Elder Law Attorney can provide invaluable guidance on asset management strategies tailored to your specific situation. They can help you understand the implications of your financial decisions and ensure compliance with program requirements while maintaining assets for future generations.
Conclusion
Asset Management Awareness Month serves as a reminder of the importance of proactive financial planning, especially in the context of financing long-term care. By implementing sound asset management strategies with the guidance of an Elder Law Attorney, individuals can secure their long-term care needs while preserving assets for themselves and their loved ones.
If you have any questions or need assistance with asset management and long-term care planning, feel free to contact us at 713-429-0218 for personalized advice.
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