Liquidating assets medicaid
Unfortunately, Medicare is not structured to pay for long-term care.
Medicaid, a federal insurance program for low-income individuals, will cover nursing home care, but you may not be able to qualify for that care until you have exhausted your existing assets.
Many elderly individuals mistakenly believe that Medicare will cover their nursing home stay.The program determines eligibility by dividing your assets into exempt and countable categories.Personal property and furnishings typically fall into the exempt category, while cash, retirement accounts and stocks fall into the countable category.The goal of every elder law attorney that handles Medicaid planning cases is to take countable resources and turn them into non-countable resources in accordance with Medicaid law and regulations.So, how do elder law attorneys do that with a sizable 401(k) or IRA?
Now folks from every economic background use trusts for myriad purposes. During your lifetime, your assets remain in your name and would be unprotected against your creditors, unless they have otherwise been sheltered.