Leading estate planning attorney Guy B. Garner, Senior Attorney at Haiman Hogue PLLC in Arlington, TX, outlines common misconceptions about nursing homes and assets. For more information please visit https://www.haimanhogue.com
Arlington, TX, United States - May 10, 2021 /MM-REB/ —
In a recent interview, leading estate planning attorney Guy B. Garner, Senior Attorney at Haiman Hogue PLLC in Arlington, TX, revealed 4 common misconceptions about nursing homes and assets.
For more information please visit https://www.haimanhogue.com
When asked to comment, Garner said, "Mistruths of what happens to assets when someone enters a nursing home are all too common. These myths often result in hard-earned assets that are poorly protected or unprotected altogether."
A widespread misconception is that an individual in a nursing home can give away $15,000 per person a year without receiving a penalty.
“This is confusing for many as this $15,000 is the limit for the federal gift tax exemption allowance and does not have anything to do with applying for Medicaid. Medicaid gifting rules differ: you will be penalized and not qualify for Medicaid benefits for some time if any gifts you make are considered divestments."
Many elderly people mistakenly assume that purchasing a “Medicaid-friendly” annuity will act as a robust asset protection plan.
“Getting a Medicaid pre-planning annuity isn’t what it used to be. Changes in Medicaid laws at both the federal and state levels have meant that annuities are no longer as helpful in planning for and qualifying for Medicaid; in fact, they can be detrimental, especially if you get one that Medicaid doesn’t consider a “medicaid qualified” annuity,” he said.
Garner added, “The downside to many annuities on the market is that they are regular deferred annuities which are not
“Medicaid-friendly.” Many of the annuities have limited options when it comes to qualifying for Medicaid and can actually narrow the scope of protected assets if you are in a nursing home.”
Another prevalent myth is that the state will seize assets when someone goes into a nursing home.
“You don’t have to hand over anything to the state. In other words, Medicaid won’t dispense any money until you ‘spend down’ your countable or available assets. If you’re not married or if your spouse is already in a nursing home, the amount to spend down is anything over and above $2,000 in cash.”
Garner was quick to add that there are more rules on qualifying for Medicaid, so it's best to speak with someone well-versed in elder law.
People who didn't have an asset protection plan before going into a nursing home often think it's too late to get one.
When asked to elaborate, he said, “It’s never too late to protect your assets. You can still qualify to receive Medicaid benefits even if you have been using private funds to pay for nursing home expenses for years. That being said, the sooner you start proactively planning for your life care planning needs, the better situated you will be when the time comes for the need of long term care.”
"But before acting, make sure to get in touch with an experienced elder law attorney. There are many rules and regulations surrounding what you can and cannot do with your assets that can severely hurt your chances of qualifying for Medicaid," he commented.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Guy B. Garner
Email: Send Email
Organization: Haiman Hogue, PLLC. - Arlington, TX
Address: 690 E Lamar Blvd #115, Arlington, TX 76011
Phone: 817-261-5222
Website: https://www.haimanhogue.com
Source: MM-REB
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