4 Common Mistakes to Avoid During the Medicaid Planning Process

Any kind of planning for the future requires some amount of consideration and help. Medicaid planning requires a lot more consideration and help. This is because if you don’t get your Medicaid planning right, the financial stakes could be very high and very costly, not just for you, but for your family. Here are four common mistakes people make during the Medicaid Planning process that you should know to avoid:

1) People don’t consult an attorney. The Medicaid laws are incredibly complex and your neighbor, financial planner, or mailman, while probably very eager to help, are not the best sources of information on this matter. The best place to start when you are Medicaid Planning is a qualified attorney who knows the laws and can advise you on a host of issues that you may not have considered or even known about.

2) People wait too long to start. The best time to plan is before you anticipate needing to put that plan in action. For individuals who anticipate that Medicaid may come into play at some point, the time to begin researching and understanding the complexities is now when there is time and distance. This is especially true if you are looking to transfer assets to others. Transferring assets during the 60-month look-back period can result in substantial penalties, including denial of Medicaid coverage until the value of the asset transferred has been made up in payments to the nursing home.

3) People don’t know what assets count. To be eligible for Medicaid, an individual must use up all of their assets to the point where they are left with $2,000 or less and have no more than $75 income per month. But, what are considered assets? In Colorado, some items that are assets are actually exempted from the total asset calculation including equity in a primary residence, personal property, one car, and certain amounts of life and burial insurance.

4) People don’t know much about Medicaid at all. Consider that most people will only deal with Medicaid once in their life, if at all. And, chances are if you deal with someone once in your life, you may not be an expert in it. This can cost you and your family a great deal in time and especially money. An hour or two with a skilled professional who can explain how the process works and can help guide you through it is a small price to pay for security and peace of mind for you and your loved ones.   

Carolyn Duncan can help you navigate the complex labyrinth of Medicaid eligibility rules and planning. Contact her today for an appointment to get started.

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Written by Carolyn Moller Duncan PC

Carolyn Moller Duncan PC

Both Bill & Carolyn are dedicated to creating a small responsive law office where you receive professional representation and close personal support during your difficult times. A place where you can ask the questions you can’t ask friends or family. A place where you can questions the answers so you really understand.