A common notion is that you need to go broke to be eligible for Medicaid. However, it is not true. With proper planning and restructuring of your financial resources, you can meet the eligibility criteria without spending everything you own on nursing home care.
This is what Medicaid planning is all about, and with a sound plan in place, you may end up saving a lot of your money or assets that would have otherwise gone to taking care of the nursing home bills. Below are some common Medicaid planning mistakes you should avoid.
Hiding assets
In a bid to qualify for Medicaid, some people may think of hiding assets. But, in the end, it may prove counterproductive when you find yourself facing fraud charges in addition to a denial of benefits. It is an offense to hide assets as much as it may be tempting.
Not planning early enough
The sooner you start planning, the better. While it’s never too late to plan for Medicaid, it is important that you begin laying the groundwork early to avoid any loose ends. That way, you can figure out the plan you are eligible for and one that will not eat away a significant portion of your assets.
Improper spending down
A spend down is meant to get your financial assets below the Medicaid qualifying threshold. When done incorrectly, you may be penalized with a period of ineligibility that will likely affect your financial security. Giving away assets to family or friends should also be done right, or else, there is a risk of potential penalties.
Medicaid planning requires the necessary knowledge to get it right. Unfortunately, mistakes are common, and costly too. Therefore, it is crucial to make informed decisions in every step to avoid any problems along the way.
