Medicaid planning in Spokane, Washington, is an essential step everyone needs to take. Many people assume that this is a step only the wealthy should worry about but it applies to everyone. The future can be uncertain and taking steps towards planning for the future can give you peace of mind and better financial stability. If you are hesitant to start this process, it can be beneficial to get the help of an affordable Medicaid planning attorney.
What Is Medicaid Planning?
Medicaid planning in Spokane, Washington is a form of estate planning that is specifically focused on paying for long-term care. Long-term care can be incredibly expensive, especially if the care has not been considered beforehand or the type of care progressively gets more significant.
In most cases, people start taking advantage of Medicaid planning when they are disabled or begin getting older, generally around 65 years old. However, this can be a good move for the majority of adults to make since there is no way to predict the future, and you may end up needing long-term medical care when you least expect it.
However, before going forward with Medicaid planning in Spokane, you need to make sure you qualify. Here are the eligibility requirements you must meet in Washington:
- Adults who have income up to 138% of the federal poverty level.
- Pregnant women with incomes up to 198% of poverty.
- Children who have household incomes up to 215% of poverty.
Keep in mind that there are some exceptions to these requirements that can be quite confusing. Because of this, it is strongly recommended that you hire a long-term care planning attorney to help you determine whether or not you are eligible for Medicaid. If you are, they can help you move forward with your Medicaid plan.
Why Middle-Income Families in Spokane Need Medicaid Planning
There are many misconceptions about what Medicaid is and who it is designed for. Many Washington residents assume that it is only for the wealthy and doesn’t apply to those who are middle or lower-income.
The reality is that Medicaid planning is an essential step everyone needs to consider, no matter their financial situation. In fact, it is more applicable to middle and lower-income families than it is to wealthier ones.
One example of why this is so important is the rising long-term care costs in Eastern Washington. This can make it much more challenging to get the care you need if you haven’t planned for financial assistance, such as Medicaid.
Even a single nursing home stay or a single medical emergency can result in your savings being wiped out entirely. Medicaid can help you plan for these types of situations as well as protect assets from nursing homes and hospitals.
Key Medicaid Planning Strategies That Work for Everyone
Now that you know what Medicaid planning is, how do you begin this process? The good news is that there are several strategies you can use when it comes to Medicaid planning that cover any type of situation.
Here are some examples of strategies you can use to prepare for long-term care in the future, no matter your financial situation.
Asset Protection
One of the best strategies you should use for Medicaid planning is asset protection. Medicaid Asset Protection Trusts and Special Needs Trusts can be used to protect a variety of assets from being used for long-term care expenses.
MAPTs and SNTs allow you to transfer assets from your estate, which will ultimately remove them from the asset limit calculator Medicaid uses. This will happen after about five years, according to the Washington Medicaid look-back rule.
Gift Strategies
You can also use gifting strategies to transfer assets from your estate so that you qualify for Medicaid benefits. Medicaid has certain regulations regarding gifts and transfers, which can be carefully planned as a way of safeguarding assets and heirlooms.
An elder law lawyer can help you create a gift strategy that makes you exempt from gift tax reporting, while still meeting Medicaid’s asset limits so that you aren’t jeopardizing your long-term care coverage. An attorney can ensure you are doing this legally while still taking advantage of every option available to you.
Care Agreements
Depending on the type of care you want, you may need to create care agreements, specifically if you want in-home care from someone you know. Care agreements provide provisions so that caregivers can provide the level of care you need.
Because in-home care can become incredibly expensive as your care needs progress, this is an essential step to take.
The Cost of Not Planning Ahead
One reason why many people do not begin Medicaid planning ahead of time is the cost. Although this may seem a bit costly upfront, especially if you are middle-income, it will cost more to not plan ahead.
Medicaid planning is an essential element of your long-term care and estate plan, allowing you to prepare for the future and protect your assets.
Not planning ahead for Medicaid can also result in you having to pay for care out of pocket, which can completely drain your savings and result in you losing assets. This can also ultimately result in you being dependent on your loved ones, which can be financially devastating.
Get in Touch With an Elder Law Attorney Today
If you are ready to begin Medicaid planning in Spokane, reach out to a long-term care 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
Can Medicaid help cover long-term care in Washington?
Yes, Medicaid can be used to pay for nursing home care, in-home care, assisted living, and adult family home care.
How early should I start Medicaid planning?
It is recommended to begin Medicaid planning a minimum of five years before you anticipate needing extensive long-term care. Planning ahead will allow you to avoid penalties during the look-back period.
Will I lose my home if I apply for Medicaid?
Medicaid does not have the power to take or sell your home. However, depending on the situation, it could deny coverage, impose a penalty period, or put a lien against your home.
