One of the reasons we focus on elder law is that when long-term care considerations impact our families, many overwhelming things happen. This is a terrifying time in a family’s life. There are several elements that people worry about before they commit to putting a loved one in long-term care:
- Are they going to get the proper care and support?
- Am I choosing the wrong nursing home?
- Am I making my loved one’s situation worse by sending them to X place?
We get our clients to focus on three things during this challenging time. When you incorporate them, you’ll know you will be protected or prepared if a nursing home factors into your family’s future.
#1 Focus on Keeping Ownership of Your Assets
This shouldn’t surprise anyone who knows or has worked with us. In our opinion, don’t ever give up ownership to prepare and protect yourself. We understand why people give up ownership of significant assets like their homes or bank accounts. For instance, they may assume that the nursing home will get their assets, so they get it out of their name. How do you know when you will go into a nursing home? That’s important because there is a penalty period for giving up ownership.
It’s called the Medicaid Look-back Period, and it’s five years. There may come a time when it is ten. Some states don’t have a limit on how far they can look back to see if they gave up ownership. Ultimately, you can lose your ability to get Medicaid. The government presumes that giving up ownership is a means of hiding assets. There’s simply no protection in this. Using a revocable trust is a method for protecting an asset while retaining ownership.
#2 Focus on the Type of Asset You Have
The type of asset determines your type of protection. It certainly is giving up ownership. For example, your home and your retirement accounts are protected assets. Since they are legally protected, there is no need to give up ownership! Putting it in an irrevocable trust may mean giving up ownership unnecessarily.
#3 Focus on Titling Where You (and Others) Have Access
How your assets are titled determines what happens if you go into a nursing home. They aren’t protected if you’ve titled them to where you’ve given up ownership. If you’ve titled them and kept ownership, they are. Here’s another thing: title your asset so you have access to it. Common sense tells us that if we give up ownership of our assets, we don’t have access to them. You can title where others have access (and when they have it) so that your estate can avoid probate when you pass away.
Prepare the Right Way
Navigating the complexities of nursing home care can be overwhelming, but you don’t have to do it alone. At J. Kevin Tharpe, P.C., we’ll guide and ensure your assets are protected and your loved ones receive the care they deserve. Whether you need advice on keeping ownership of your assets, understanding the types of assets you have, or proper asset titling, our expertise in elder law and estate planning will provide you with the peace of mind you need. Don’t wait until it’s too late—schedule a consultation today and let us help you secure a brighter, more secure future for you and your family.
Kevin Tharpe
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