As you age, you may need more help when it comes to living on your own due to medical issues. If you should need to hire in-home care or go into a nursing facility, the costs are often incredibly.
Most people need to rely on insurance to help them pay for care costs as they age. Medicare will not cover the costs of certain expenses, such a nursing home care. Many people apply for Medicaid, which is a government insurance program based on need. You must meet specific income requirements, which require Medicaid planning, according to the American Council on Aging.
Medicaid planning involves ensuring your assets and income will be below the required limit so you qualify for the program when you need it. Planning is essential because you cannot simply get rid of assets to meet the limit.
There is a look-back period in which Medicaid can look back at assets you previously owned and count those towards your limit. If you do not plan, you may end up selling assets and still be over the income limits.
Medicaid planning also may involve figuring out the documents and other information you will need to apply to the program, along with getting help actually filing the application. To help handle your assets, planning may involve setting up trusts and other financial accounts.
Medicaid planning not only helps you to ensure you can afford your long-term care needs. It also helps to ensure you protect your family and ensure you can keep important assets within your family.