A person or family may spend approximately $6,000 or more monthly for long term health care and medication. Even if costs are minimized and kept at a low average, it will still surpass $2,000 per month. This can add up to $240,000 and $720,000, if an individual would need ten long years of health care.
Furthermore, if an individual will not be capable of dealing with costs or payment arrangements themselves, they may need to put up a trust, guardianship or conservatorship. These options may cost them to almost tens of thousands of dollars. When they also choose to go through this route, they may have to expose more of their private life than they want, since court proceedings would be needed when filing for these. Even in states which have laws that set a limit for public disclosure of court records, privacy can still be an issue.
If one is planning or making arrangements for the possibility of being debilitated, it is crucial to take these things into consideration. Privacy problems may be avoided or limited if an appropriately created power of attorney or trust is prepared with a vision to protecting privacy.
Suitable estate planning is also effective in lowering the outcome of continuing health care costs. Reducing the assets of an individual in order to qualify for Medicaid, and eventually Medicaid repayment which will be required after a Medicaid recipient passes away can also be made easier through Medicaid estate planning.
Although this will not totally take care of all costs and problems, a very competent attorney who specializes in elder law can help lighten the burden of these tribulations. This would be most effective if Medicaid estate planning was prepared in a good amount of time and for arrangements to be put into action beforehand.
There are some factors that people should take into account when properly preparing for Medicaid estate planning. There are federal laws that have to be considered, and these often are changed in a very short span of time. This can be Budget deficit laws or adjustments made to Medicaid funding by federal governments.
One such policy that could greatly affect the eligibility of an individual for Medicaid is the duration of look back periods. Previously pegged at three years, if an individual has uncompensated transfers within five years, they may not be awarded Medicaid assistance, which can last more than the look back period depending on the amount uncompensated transfer. Also based on new federal legislation, if an individual made an uncompensated transfer, they would begin to be disqualified when he or she is basically bankrupt.
With many lawyers and legal groups now practicing elder law, these problems are typically being addressed right before they happen. Although these may only be effective for some people, those who are not qualified for Medicaid or do not have these problems still need to keep up to date of these options. They may eventually find themselves or someone in their family encountering these issues.
Individuals should look into Medicaid estate planning for future needs in means that would be appropriate for them.