Helping Southern California Families Navigate Medicaid Eligibility and Asset Protection

An old saying goes, “Getting old isn’t for wimps.” This is true. Those who reach old age have done so after a lifetime of hard work, perseverance, and overcoming numerous challenges. Many people look forward to being able to relax and enjoy their retirement once they reach a certain milestone in life. Part of this involves being able to take advantage of the various benefits offered to older Americans. One of these benefits is Medicaid. While many Americans are aware of Medicaid as a program that offers free healthcare, many do not realize that not everyone qualifies for Medicaid benefits.

In fact, many Americans must undertake a complex process known as Medicaid Planning before they can qualify for benefits. This is why everyone needs to consult an experienced and compassionate Medicaid Planning attorney as they reach the appropriate age. Our dedicated Bakersfield Medicaid Planning lawyer can help you and your loved ones prepare for a potentially challenging process and ensure you receive all of the benefits to which you are entitled.

What is Medicaid?

Medicaid is a unique government program meant to provide low-cost or free healthcare to low-income Americans. Medicaid is unique from Medicare. While Medicare is specifically tailored to provide medical services to the elderly, Medicaid is available to low-income Americans of all ages. However, many older Americans benefit from the additional services available to them through Medicaid, which may not necessarily be available via Medicare. For example, long-term care facilities may not be covered by Medicare but may be available via Medicaid.

What is Medicaid Planning?

Medicaid is meant to help low-income individuals. However, many people find the requirements to qualify for Medicaid prohibitively strict. Many people have too much money to qualify for Medicaid, but may not have enough money to pay for their own treatment. This is where Medicaid Planning comes in. Medicaid has what is referred to as a “look-back period.” In California, the look-back period is five years. This means that, when you apply for Medicaid, officials will review your previous five years’ worth of financial records to determine your eligibility. If your assets are valued highly enough or if you have too high an income level, you may not be able to qualify. Medicaid Planning is a legal strategy that allows you to prepare to apply for Medicaid while retaining access to necessary financial resources.

What are Medicaid Requirements?

There are multiple requirements in place to qualify for Medicaid. Depending on your specific situation, you may need to meet more or fewer requirements to qualify.

Common Medicaid requirements include, but are not necessarily limited to:

• Being 65+, Pregnant, Blind, or Disabled
• Being a U.S. citizen
• An Asset Cap of $130,000 per couple/$65,000 per individual
• Income Less than 138% of the Federal Poverty Level

Many people struggle to pay for healthcare while also meeting income requirements. For example, an adult making $21,000 a year would fail to qualify for Medicaid because they would be earning more than 138% of the Federal Poverty Level. However, many individuals who only make $21,000 a year would struggle to pay for medical care. This is why Medicaid Planning is so vital. Medicaid Planning allows you to legally disperse assets in such a way that you can enjoy their benefit while also receiving necessary care.

What are some Medicaid Planning Strategies?

There are multiple options available for people interested in Medicaid Planning. One of the most popular options is a Medicaid Asset Protection Trust. This is a unique type of trust created specifically for individuals who have too many resources to qualify for Medicaid, but not enough to pay for their own care.

A trust is a legal entity similar to a business, created for the purpose of holding assets for future owners. When you create a trust, you transfer ownership of certain assets, including money and real estate, into its ownership. The entity is then administered by an appointed representative, known as a trustee. The trustee will handle your assets according to your instructions. Because assets transferred into the ownership of a trust are no longer your legal property, their value can be deducted from your worth in determining your Medicaid eligibility. This is a simplified explanation of how a Medicaid Trust works. Our knowledgeable and compassionate Medicaid Planning attorney can review the entire process and determine whether a Medicaid Asset Protection trust is right for you.

Strategic Gifting is another viable option. This involves gifting certain key assets to friends and family members in advance of the five-year look-back period. Many people consider this an “Advanced Inheritance.” Some people opt to gift their loved ones the items and money they would have received as an inheritance ahead of time. This not only allows a person to see their family and friends enjoy their inheritance, but potentially allows them to receive greater benefits.

Spending down is another viable strategy. This involves liquidating cash resources in a way that is materially beneficial to you. For example, your primary residence cannot be counted as an asset for purposes of Medicaid. Many people opt to use cash resources to pay down their mortgage ahead of the five-year mark. This allows them the security of knowing their home is secure, while also reducing their cash-on-hand.

These are only a few potential strategies for Medicaid Planning. Medicaid requirements are strict, and many individuals struggle to understand what is required of them. This is why anyone contemplating Medicaid needs to consult an experienced Medicaid Planning attorney.

What Should I Do if I Need to Plan for Medicaid?

Medicaid is a valuable program that benefits millions of Californians, particularly the elderly. However, many people who need it most struggle to qualify. Medicaid Planning is a viable option to receive benefits, but navigating the complex process is challenging for many. This is why if you or a loved one needs to qualify for Medicaid, consult the Law Offices of Robert H. Brumfield, P.C.

Robert Brumfield has a particular level of compassion for older clients. He believes those who reach old age deserve our respect and support. That’s why he takes Medicaid Planning especially seriously. He and his dedicated Kern County-based Medicaid Planning staff approach every case with the highest levels of care and concern. Don’t allow technicalities to get in the way of your healthcare. If you or a loved one needs assistance with Medicaid Planning, don’t hesitate to call 661-384-6940 to schedule your free consultation today.