Planning Ahead for Peace of Mind
No one wants to think about needing long-term care. In fact, it’s something many of us avoid discussing until it’s too late to make the best decisions. However, the reality is that approximately 1 in 2 seniors over 75 years of age will require some form of long- term care. At The Law Office of Audrey Ehrhardt, we’re here to guide you through this important planning process, ensuring you have the knowledge and support to make informed choices that protect your health, finances, and family
Understanding the Different Types of Long-Term Care
Common Misconceptions and Key Considerations
Properly designating beneficiaries for retirement accounts, life insurance policies, and other assets is crucial for honoring your wishes. We’ll review and update your beneficiary designations as part of your estate plan.
The Importance of Long-Term Care Planning
Many people are surprised to learn that common practices can impact their future eligibility for Medicaid benefits. Here are some critical factors to consider:
Paid Family Caregivers Require a Contract. If you’re paying a child or family member for care, Medicaid requires a formal caregiving contract to recognize these payments as a payment for care and not a gift. Without a contract, these payments could be considered gifts, potentially affecting Medicaid eligibility.
Gift Tax Exemptions and Medicaid Penalties. While federal law allows individuals to give a certain amount each year without incurring gift taxes, these gifts can still trigger Medicaid penalties if they occur within Medicaid’s “look-back” period. It’s important to work with a knowledgeable attorney to structure any gifts in a way that protects your future eligibility.
Planning for the Unexpected. Many clients think that because they’re healthy today, they won’t need to worry about long-term care. But planning now, before any need arises, helps protect your family’s resources, ensures your care preferences are respected, and alleviates stress for your loved ones.
The Importance of Long-Term Care Planning
Many people are surprised to learn that common practices can impact their future eligibility for Medicaid benefits. Here are some critical factors to consider:
Paid Family Caregivers Require a Contract. If you’re paying a child or family member for care, Medicaid requires a formal caregiving contract to recognize these payments as a payment for care and not a gift. Without a contract, these payments could be considered gifts, potentially affecting Medicaid eligibility.
Gift Tax Exemptions and Medicaid Penalties. While federal law allows individuals to give a certain amount each year without incurring gift taxes, these gifts can still trigger Medicaid penalties if they occur within Medicaid’s “look-back” period. It’s important to work with a knowledgeable attorney to structure any gifts in a way that protects your future eligibility.
Planning for the Unexpected. Many clients think that because they’re healthy today, they won’t need to worry about long-term care. But planning now, before any need arises, helps protect your family’s resources, ensures your care preferences are respected, and alleviates stress for your loved ones.
Why You Shouldn’t Wait to Plan
Long-term care planning can be an uncomfortable topic, but it’s one of the most important steps you can take to protect your legacy and secure your family’s future. By planning now, you can make decisions based on what’s best for you and your loved ones – not under the pressure of a crisis. Our team at The Law Office of Audrey Ehrhardt will work with you to explore all options and ensure your plan aligns with your values, wishes, and financial goals.
How We Can Help
Structuring caregiver arrangements to meet Medicaid requirements
Exploring Medicaid eligibility and alternative funding options for long-term care
Helping you protect your assets and plan for future healthcare needs
Frequently Asked Questions
What is long-term care planning, and why is it important?
Long-term care planning involves preparing for the potential need for extended personal or medical care, whether at home or in a facility. It’s essential because it helps protect your finances, ensures you receive the care you want, and provides clarity for your loved ones.
Does Medicare cover long-term care?
No, Medicare is designed for short-term or acute care and doesn’t cover long-term custodial care. Medicaid, however, can help cover long-term care costs for those who qualify.
What types of long-term care are available?
Options include independent living, assisted living, skilled nursing, and home care. Each option varies in terms of support level and cost, and we can help determine the best fit for your needs.
Can paying a family caregiver impact my Medicaid eligibility?
Yes, Medicaid requires a formal caregiver contract if you pay a family member for their assistance. Without a contract, these payments might be treated as gifts, which can impact Medicaid eligibility.
Will gifting assets affect my ability to qualify for Medicaid?
Yes, gifts within Medicaid’s “look-back” period can result in penalties. While federal law allows for annual gift tax exemptions, these may still count as gifts for Medicaid purposes. We can help you structure gifts to avoid penalties.
How soon should I start planning for long-term care?
It’s best to start as early as possible, ideally while you’re still healthy and able to make decisions about your future. Early planning helps protect your options and gives you the greatest flexibility.
Protect Your Future with a Long-Term Care Plan
Don’t wait until a crisis arises to start planning. Schedule your free initial consultation today to discuss your long-term care options with our experienced team. We’re here to provide compassionate guidance and create a plan that brings peace of mind for you and your family.