Medicaid Planning in Florida

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Robles Law P.A.

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Apr 24, 2023

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Florida - Sarasota, Bradenton & Charlotte Counties

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Many senior citizens need long-term care at some point. Some senior citizens do not have family members who can give them the kind of care they need, and because of that as well as many other factors, they will need nursing home care. 

But nursing home care and other long-term care arrangements are expensive. Medicaid can help fund these things, but you must meet the financial qualifications. Estate planning is critical for many people to be able to qualify. At Robles Law, P.A., our estate planning attorney in Florida will walk you through the estate planning process and help you begin planning for Medicaid early so that you and your spouse will qualify if or when the time comes and you need the help. Call (941) 315-2114 to schedule a consultation today.

What is Medicaid?

Medicaid is a federal program that provides healthcare coverage to individuals as well as families that are low income. Costs of this program are typically covered by a combination of federal and state funding. Services are provided to those with limited financial means so that they can obtain the medical care they need with limited out-of-pocket costs. 

Medicaid also provides coverage to disabled people in some situations. It can assist the elderly with paying Medicare premiums. 

Planning for Medicaid in Florida

Before submitting an application for Medicaid, many people go through a process known as Medicaid planning. Medicaid planning is assessing a potential applicant's ability to receive Medicaid and taking steps to improve their chances of receiving it. 

Why People Plan for Medicaid

There are multiple reasons why people engage in Medicaid planning in order to qualify for the program. Three common reasons are:

  1. To obtain coverage for the cost of long-term care that they would not otherwise be able to afford;
  2. To preserve assets that may otherwise become part of Medicaid's estate recovery program; and
  3. Because the Medicaid application process can be confusing, getting assistance from someone who understands how it works can prove very beneficial in the long run.

Medicaid planning benefits people who really need the services provided but fear they may not qualify. If you do not have the financial resources or family members who are able to care for you when it becomes harder for you to do it yourself, you should speak to an attorney to plan your estate. Qualifying for Medicaid can be a big help just when you need it.

Medicaid Eligibility & Coverage in Florida 

Medicaid planning exists to provide medical coverage to those people who need it most. Following are some of the main qualifications that must be met.

Income-Based Eligibility

Income is one of the primary factors considered in a Medicaid eligibility determination. For most children, pregnant women, parents, and adults, their income must be below a certain threshold. This amount is calculated using taxable income and tax filing relationships. 

There are cases where people who wish to qualify for Medicaid give their possessions to their children or other family members so that they may qualify for benefits. There are rules established to prevent this from happening, and it may not be in your best interest to give away your property. Thus, the reason it is important to speak with an estate planning attorney in Florida.

Non-Income Based Eligibility 

There are ways to qualify for Medicaid even if you are unable to qualify under the income requirements. Blindness, disability, or age (over the age of 65) are other ways to qualify. Veterans may also qualify for Medicaid benefits.

Coverage Services Provided by Medicaid

Federal law mandates that certain services be covered by Medicaid, while other services are decided by each state. Typically, Medicaid covers the following:

  • Inpatient and Outpatient Hospital Visits
  • Home Health Services
  • Physician Services
  • X-Ray Services
  • Laboratory Services

You will need to check with your state to determine what other services may be covered. 

How a Medicaid Attorney in Florida Can Help

If you or a loved one is in need of the long-term care that Medicaid helps cover, but you are unsure if you will be able to qualify, a Medicaid attorney in your area can help. They will know what the threshold amount is for qualification. If your income exceeds that amount, they will be able to work with you to formulate a plan to help you become qualified. One of the ways to accomplish the latter is through shielding your assets so they are no longer considered when your financial situation is assessed to determine Medicaid eligibility. 

Contact an Estate Planning Lawyer in Sarasota for Medicaid Planning Today

At Robles Law, P.A., our estate planning lawyer understands the importance of Medicaid eligibility for so many seniors who need long-term care. Unfortunately, so many people learn about estate planning for Medicaid when it is too late. Start early to avoid future problems and make sure you qualify for Medicaid when you most need it. Contact us either by calling us directly at (941) 315-2114. We will schedule a consultation and help you get started on Medicaid planning today.

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Time for tax-loss harvesting?

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Top 6 Reasons You Should Have Your House In A Trust

Many people believe that having a Will is all they need, and they dont need an estate plan. Over the years we have worked with many families who only had a Will, and no provisions for needing care in a nursing home. As a result, the healthy spouses financial security was neglected and the family went broke.Many of my clients who want to protect assets from long term care costs, own their houses in an asset protection trust. These are the top 6 reasons why our clients decide to use this trustWhile Your Parents Or Grandparents Didnt Have An Asset Protection Trust, They Didnt Often Need Long Term Care. They likely had family members nearby caring for them.Statistically speaking, your odds of needing long term care are increasing. Estimates point to two out of three people who will need long term care in nursing homes in their 80s. Nursing homes currently cost $15,000 a month, and they will cost even more 20 years from now. Asset protection is important, to avoid losing everything to long term care costs.Estate Planning Is Not Just About Answering The Question Of Who Gets Your Stuff When You Pass Away. Its also about planning for what happens if you get really sick. Weve all been paying into this government system with the promise that when we turn 65, we will have healthcare. Unfortunately Medicare doesnt pay for the single biggest health care expense that seniors face, which is custodial long term care in a nursing home.If your health issue is acute, such as a heart attack, or you need surgery, or have cancer, and require acute care in hospital, Medicare will cover the costs of treatment. Whether my spouse and I are financially secure in our retirement years, depends on the healthcare issue either of us will have. This is often beyond our control, but what we can do is to prepare for all eventualities, by protecting our house with a trust. Medicaid Is The Only Government Payment Source For Long Term Care, But The Rules Are Broken. If youre a single person going to a nursing home, youre allowed to own up to $8,000 of assets, a house and car. A couple with $100,000 in a retirement account, must spend that money on care in the nursing home. Once the money is gone you can apply for Medicaid benefits. However, your monthly income is used to pay for care, and you are only allowed to keep $45 a month for all your personal needs. We have a situation where seniors are going broke before they get Medicaid benefits. Theyre allowed to own a house but if they have no money, they cannot pay property taxes, utility bills or maintenance costs.Assuming your child is a power of attorney, they may sell your house to avoid paying the taxes and bills. However, this means you will now have cash which will result in you losing your Medicaid benefits. Not only do you lose your house, but you will need to spend the money on care. When you are broke, you are eligible for Medicaid benefits again. It is not obvious in the Medicaid rules that you will lose the house. The problem is that it becomes financially impossible to keep the house. Putting your house in a trust will protect it from being lost to Nursing home costs.If The House Is Left To Your Child In Your Will, By Paying The Taxes And Keeping The House, Does Not Guarantee That They Wont Lose The House. When somebody who passes away was on Medicaid, the executor is forced to sell the house. The proceeds are used to pay the state for the care the senior received in the nursing home. This is known as the Estate Recovery Program, and the claim in Pennsylvania is limited to someones probate estate. This means that if the assets go through the Will, it will be a probate case, and the state will have a claim against the house.If your house is in the asset protection trust when you pass away, the state cant get your house while its in the trust. Your kids will inherit the house if you go to a nursing home, or you pass away.Your Kids Will Receive Their Inheritance Faster If Your House In An Asset Protection Trust.We dont have to wait 12 months to make the distribution of the inheritance to the children. The distribution process usually happens after four to five months. This is because we dont have to pay creditors. Usually, in probate cases, creditors can make a claim a year after the person has passed away. Once the creditors are paid, distributions are made to the heirs.When Your House Is In An Asset Protection Trust, The Only Thing You Would Have To Give Up Is Having Access To The Home Equity. However, if you have money in the bank, you wont need home equity. 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Local Services By This Author

Robles Law P.A.

Estate Planning 8592 Potter Park Drive, Sarasota, Florida, 34238

At Robles Law, P.A., we specialize in bringing the law to your corner. We offer concierge services for housebound seniors or those who are unable to leave the hospital, nursing home or skilled nursing facility.  Whether it is applying for Medicaid or Veterans' benefits or planning ahead for Medicaid or Veterans' benefits, Robles Law is here to help.  As the Medicaid programs and Veterans' benefits programs change every year, a consultation is required to clearly analyze your individual situation and goals.  We will work with you every step of the way to make sure that you understand the choices you are making and feel empowered to make them.

Robles Law P.A.

Probate 8592 Potter Park Drive, Sarasota, Florida, 34238

At Robles Law, P.A., we specialize in bringing the law to your corner. We offer concierge services for housebound seniors or those who are unable to leave the hospital, nursing home or skilled nursing facility.  Whether it is applying for Medicaid or Veterans' benefits or planning ahead for Medicaid or Veterans' benefits, Robles Law is here to help.  As the Medicaid programs and Veterans' benefits programs change every year, a consultation is required to clearly analyze your individual situation and goals.  We will work with you every step of the way to make sure that you understand the choices you are making and feel empowered to make them.

Robles Law P.A.

Power of Attorney 8592 Potter Park Drive, Sarasota, Florida, 34238

At Robles Law, P.A., we specialize in bringing the law to your corner. We offer concierge services for housebound seniors or those who are unable to leave the hospital, nursing home or skilled nursing facility.  Whether it is applying for Medicaid or Veterans' benefits or planning ahead for Medicaid or Veterans' benefits, Robles Law is here to help.  As the Medicaid programs and Veterans' benefits programs change every year, a consultation is required to clearly analyze your individual situation and goals.  We will work with you every step of the way to make sure that you understand the choices you are making and feel empowered to make them.