Long-term care planning for couples is something that all Washington residents need to consider when it comes to their future medical needs. Legal planning for senior couples is especially important, but this is still a step that everyone should consider, no matter their age or current medical needs. Taking this step can help couples better prepare for the future, especially when it comes to protecting assets and preserving the future of both spouses. It is also strongly recommended that couples hire an elder law attorney in Spokane Valley to help them when they are creating their long-term care plan.
Why Planning for Both Spouses Is Crucial
Although it is relatively common for Washington residents to develop a long-term care plan, estate planning for older couples is sometimes overlooked. Medicaid planning for married couples ensures both spouses will be taken care of, no matter their future medical needs or expenses.
Here are some of the main reasons why long-term care planning for couples is so important:
- Asset depletion: If you haven’t begun legal planning for senior couples, it is very likely that you will be hit with some significant future expenses. Long-term care is very expensive and can result in couples having to sell off many valuable assets as a way of paying for this care. If you have a plan in place, you can protect these assets, especially when it comes to irreplaceable assets like heirlooms.
- Preserving income: When one spouse requires more extensive long-term care than the other, this can come with financial complications. Without an estate plan for couples, this could result in the healthier spouse being left without an income to support them.
- Housing concerns: Just like income concerns, the healthier spouse can also have housing concerns when their spouse requires long-term care. They may not be able to keep their home or afford other housing options if they haven’t included this in a long-term care plan.
Medicaid Rules for Married Couples in Washington
Medicaid rules for spouses in Washington are also things you need to consider when creating a long-term care plan. Navigating the Medicaid rules for couples can be quite challenging, as you want to qualify for Medicaid without leaving your spouse destitute.
Here are the main rules you need to be aware of that could impact you and your spouse:
- Community spouse resource allowance
- Monthly maintenance needs allowance
Some Medicaid planning strategies you can use include following the spousal impoverishment rules in Washington, transferring assets, and using irrevocable trusts.
Keep in mind that the rules will be slightly different depending on whether or not both spouses or just one are applying for Medicaid. You also need to make sure you are up-to-date on the Medicaid rules, as these can change yearly.
It is best to hire an elder law attorney when it comes to navigating Medicaid rules for spouses in Washington. An attorney will be up-to-date on the latest rules and can help you navigate the complexities of long-term care planning with Medicaid.
Tools and Techniques for Couple-Based Long-Term Care Planning
There is no single strategy that is perfect for all couples who are developing a long-term care plan. This is because every situation is different, and some strategies may work for some couples but not others.
However, here are some examples of flexible strategies couples can use to plan for the future in a way that protects both spouses.
Asset and Income Strategies
There are some strategies couples can use in their long-term care plan, especially if they want to achieve Medicaid eligibility. For instance, many couples will spend down their assets in order to meet the eligibility requirements for Medicaid, which works much like an insurance policy deductible.
Couples can also use asset protection trusts and income trusts to protect assets and incomes when applying for Medicaid benefits.
Power of Attorney
No matter your specific situation, it is essential to appoint a power of attorney for both spouses. The power of attorney will have the power to act on your behalf when you are no longer capable of doing this on your own. One power of attorney may be appointed for both spouses, or there may be two separate powers of attorney.
It is essential that you appoint somebody who will respect your wishes and act in your best interest.
Legal Documents
Even when it comes to long-term care planning for couples, each spouse needs to have their own will drawn up. This will include critical information regarding their last wishes, especially when it comes to their long-term care.
Along with these important legal documents, each spouse should also have a healthcare directive that outlines the type of care they want. If either spouse becomes incapacitated or unable to act on their own behalf, the power of attorney can use these documents to guide the couple’s care.
It is strongly recommended that couples get the help of a long-term care planning attorney in Washington before starting their plan. An attorney will ensure their plan includes all of the necessary legal documents and follows Washington laws.
Get in Touch With an Estate Planning Attorney Today
If you want to get started on long-term care planning for couples, reach out to an elder law planning attorney at Legacy Law Group in Spokane, Washington. Contact us today at 509-315-8087 to speak with one of our attorneys to get the process started.
FAQ Section
If my spouse goes into a nursing home, will I lose our savings?
No, in most situations where your spouse enters a nursing home, if you are a community spouse, you will not suffer financially.
Do we both need separate estate plans?
Whether or not you and your spouse have joint or separate estate plans is completely up to you. There are pros and cons for both options, depending on what your goals are for the future.
Can I stay in our home if my spouse needs Medicaid?
In many instances, it is possible to remain in your home if your spouse is on Medicaid. Medicaid cannot necessarily take your home or sell it out from under you, although it can put a lien on your home in certain situations.
