Medicaid planning is crucial for long-term care

On Behalf of | Oct 29, 2019 | Uncategorized |

To prepare for long-term care costs in Wisconsin may not be what anyone wants to do, but it is crucial. If a person has income that is too low to cover nursing care but is too high for Medicate, then he or she may want to do some estate planning to qualify.

According to the American Council on Aging, Wisconsin has a look-back period of five years. This means that a person has to qualify for Medicaid in the five years leading up to obtaining the benefits. Even if the person qualifies at the time, if he or she did not qualify at some point during those five years, then he or she faces disqualification. If a person does not plan for Medicaid, if health takes a sudden turn, then he or she is in trouble.

Some choose Medicaid trusts. These are trusts that allow a person to preserve his or her Medicaid eligibility and his or her assets, according to MarketWatch. It is important to note that Medicaid trusts are irrevocable. This means that the creator cannot change the terms at any time. The creator also does not have full control over the trust. You are not the trustee.

Medicaid planning needs updating on a regular basis. To choose a power of attorney may be crucial in the planning process. If a person becomes unfit to continue to manage the trust, then he or she will need someone else to take over the Medicaid planning. It is best suited to be someone that the creator of the trust knows will adhere to his or her wishes.