MEDICAID PLANNING

What is Medicaid Planning?

Medicaid is a State/Federal program that pays most nursing home costs for those who meet three requirements based on need. This includes aged or disabled, medical, and financial needs.

In determining the financial need of a Medicaid applicant Delaware’s financial criterion is based on the income and assets of an applicant. Certain assets are exempt from consideration and can be kept when applying for Medicaid. These include:

• Personal residence (subject to equity limits)
• Automobile
• Whole life insurance policy with cash value under $2,500.00
• Prepaid funeral services
• Household furnishings

Consulting with an Elder Law attorney as soon as possible will help preserve assets should one need a skilled nursing facility. But even without advanced planning an Elder Law attorney can still help preserve assets and avoid costly mistakes.

Medicaid Planning also includes:

Durable Powers of Attorney: This statutorily recognized document grants legal authority for one’s designee or agent to act on the principal’s behalf, when is one unable either physically or mentally to make their own decisions. The power of attorney must be carefully drafted to make provisions for the elderly or disabled person.

Advanced Healthcare Designations: This document allows one person to choose another person to make healthcare decisions when they are unable to make decisions for themselves because of physical or mental disability. It is very personal and should be designed individually.

Living Wills: This sets out the person’s wishes with regard to life or death decisions. Consideration must be given to both rapidly changing medical technology and the law.

Medicaid is a complicated area of the law in which most people have little experience. Expert guidance can assure Medicaid eligibility within the law.

It is never too late to plan, even when a spouse or loved one is already in a nursing home.