Now that you’re getting older, it might start making sense to update your estate plan more regularly and to make sure it is designed in a way that makes sure you have what you need in the case that you have to qualify for Medicaid or other medical services.
Your estate plan should be finessed so that it can help you qualify for Medicaid without losing a large share of your assets. It should have long-term care solutions, too, so you can get medical help without putting everything you’ve worked for in jeopardy.
Updating your estate plan can help with Medicaid planning
A good, updated estate plan could help you qualify for Medicaid without having to give up many of your assets. How? One of the things to consider is adding a trust to your estate plan that holds the majority of your assets. By reducing the value of your estate in this way, you may qualify for Medicaid sooner even if you have assets that would have been able to have been used to pay for your care.
Here’s an example
Imagine that you have $500,000 in cash assets that you want to pass on to your children. If you place those assets into an irrevocable trust, you will not be able to access them any longer. However, they will be passed onto the beneficiaries at the time you’ve established.
Now, imagine that you need Medicaid in six or seven years from now. Since the look-back period (usually five years) has now passed, those assets won’t be at risk. Your estate will be worth $500,000 less, which may help you qualify for Medicaid without having to spend down your assets.
You can also use your estate plan to help with long-term care planning. Purchasing life-insurance policies and long-term care plans can be ideal for protecting your assets and making sure you’re insured when you need coverage the most.
If you want to protect yourself, estate planning can be an excellent option. With the right estate planning techniques, your assets can stay protected and help you qualify for all the benefits you need.