By Grace Kim, intern
Medicaid Planning can be confusing and frustrating. Often times it can feel there are a million obstacles and hurdles in the way of responsible planning. On top of all this, there are many myths about Medicaid that can bring the planning process to a grinding halt. Here are the top three myths of Medicaid Planning.
1. Monetary gifts that are exempt from gift taxes are also exempt from the Medicaid Planning Process
Although this myth may seem like an easy assumption, don’t believe everything you hear! Even if a gift is exempt from gift taxes, they are still a part of the Medicaid Planning process!
2. Assets in a Revocable Trust are exempt from Medicaid Planning
A Revocable Living trust is a great way to plan your estate. It will help your estate avoid probate, all while maintaining your privacy. However, don’t forget that the assets in a Revocable Living Trust are NOT exempt from Medicaid Planning. It’s easy to see how this myth began, as the assets in a Irrevocable Trust can become exempt from Medicaid Planning five years after their placement.
3. A Medicaid Supplement will cover Nursing Home Care
A Medicaid Supplement has many benefits; It can act as a stepping stone to further care. However, keep in mind that a Medicare Supplement is not the most secure long-term solution. Medicare Supplements do not cover long term nursing home care, a key fact that could leave your loved ones in a difficult place.
Medicaid Planning can be confusing, but it doesn’t need to be. The help of a great attorney can guide you through the hurdles and myths that can trip up securing your Medicaid Care.
