Paying for long-term care is a challenge many families face. Nursing home costs continue to rise, and without planning, these expenses can wipe out a lifetime of savings. Medicaid can cover care, but qualifying means you must meet strict income and asset rules. Fortunately, there are legal ways to protect what you have worked hard to earn.
How Medicaid Rules Affect Your Assets
Florida limits how much a person can own and still receive Medicaid. For individuals, countable assets must stay below $2,000. For married couples, the spouse who is not applying, called the community spouse, can keep up to $157,920. Even with these allowances, most people will still need to spend down some assets.
But here is where it gets tricky: Medicaid will check financial records from the past five years. If you gave away money or transferred property during that time, you could be penalized and delayed from getting benefits. This is why it is important to plan early and carefully.
Smart Ways to Protect What You Own
There are a few tools that can help:
- Irrevocable trust: Once assets go into this kind of trust, they no longer count toward the Medicaid limit if you set it up before the look-back window.
- Life estate: A life estate lets you transfer a home to someone else but still live there for the rest of your life.
- Medicaid-compliant annuities: Some families use Medicaid-compliant annuities to turn assets into income, which helps meet the rules without giving up everything.
- Funeral trust: This type of trust puts aside money for future burial costs or signs a formal care agreement with a family member.
These approaches allow you to spend money in ways that benefit you while still following Medicaid guidelines.
We Help Florida Families Plan Ahead for Care
At Wickersham & Bowers, we help families in Florida protect their assets and plan for nursing home care with confidence. Whether you are years away from needing care or already in the process of applying for Medicaid, we can walk you through every step. Reach out to us today to schedule a consultation and start building a plan that works for your future.