Did you know that, according to the US Dept. of Health and Human Services, a person turning 65 today has almost a 70% chance of needing some type of long-term care services, including assisted living or a nursing home? The median cost of a private room in a nursing home is over $100,000 annually, according to the Florida Health Care Association. Medicaid planning involves legally and ethically protecting assets for those who do not already qualify for Medicaid, and for those who qualify but may be expecting an influx of money, such as an inheritance or a personal injury settlement, so that individuals can make their money last longer and lead to the highest possible quality of life.
The laws governing Medicaid can be complex. For 2021, the income cap to qualify for Medicaid in Florida is $2382.00, per month. If your monthly income, from all sources, exceeds the limit for this year, you will not qualify for Medicaid. You may, however, consider creating either a Miller Trust, a Qualified Income Trust (QIT), or a Supplemental Needs Trust. A Miller Trust is an irrevocable trust that accepts any monthly income over the income cap or slightly more, even though the Trust still uses that money to pay for your long-term care, minus a small personal allowance. These types of trusts may be structured so that certain assets and income sources are removed from the Medicaid calculation, allowing a person to then qualify to receive Medicaid benefits to cover the cost of long-term care.
Medicaid planning may require a thorough examination of your total asset portfolio. Our office can help you protect your home and other assets. This can be especially important if one spouse needs care and the other can live independently. Do you have questions? Please contact our law practice to learn more. We are here for you. Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to provide service in Palm Beach, Martin, St. Lucie and Indian River Counties.