As elder law attorneys, we meet a lot of folks in crisis. A loved one is now in a nursing home. Placement can occur suddenly due to an unexpected medical event, such as a stroke, or as the end result of a progressive disease, as is the case with Alzheimer’s. In addition to coping with the emotional trauma of a new dynamic, panic sets in when the family receives that first nursing home bill. Costs can range from $10,000 to more than $15,000 a month.

In that light, our focus is to obtain the best level of care for our clients while maximizing the protection of their assets from a catastrophic spend down. The Medicaid (a/k/a “MassHealth”) rules are different depending on whether the person entering a facility is single or married. A couple is afforded greater protections when one spouse still resides at home. With the right strategy, a couple can usually protect most of the assets for the spouse at home. Conversely, the Medicaid rules are much harsher for a single person, who often will lose everything.

With that said, clients (single or married) are able to significantly increase their ability to protect their assets by engaging in asset protecting planning when the likelihood of requiring long-term care is small. This is because most steps folks take to protect their assets trigger up to five years of ineligibility for Medicaid benefits. So, it makes sense to begin the ineligibility period when you’re healthy and unlikely to apply for the program. For that reason, we often recommend asset protection planning when a couple or single person is in their sixties. The seventy and eighty year olds often get the same advice, but the risk of the plan not working is greater if one doesn’t get through the five year ineligibility period. So, don’t wait for the crisis. The earlier you plan, the more you are likely to protect.

Regards,
Eric R. Oalican, Esq.
Oalican Law Group, LLC©