Medicaid Planning and Estate Planning in Georgia

Nobody wants to think about aging and potentially requiring long-term care in a nursing home or assisted-living facility. However, according to Health and Human Services (HHS), more than two-thirds of adults (70 percent) who reach the age of at least 65 will require long-term care at some point in their lives. About one-quarter of older adults will end up needing long-term care for more than two years. In 2022, about 1.2 million people were residing in nursing homes. In other words, even though it is a difficult subject to consider, it is important to plan for long-term care, and this should be part of your estate planning process.

Whether you are helping an elderly parent with estate planning, or you are in your 40s or 50s and want to be sure you are prepared for the future, it is important to discuss Medicaid planning and other long-term care planning strategies with an estate planning attorney in Norcross. Consider the following information, and do not hesitate to get in touch with Bowman Law Firm for assistance.

Medicaid is Usually How Older Adults Pay for Long-Term Care

 Unless you are a high net worth individual, there is a strong likelihood that you will want to have Medicaid pay for any extensive long-term care that you may require in the future. For residents of Gwinnett County who have earned a strong salary during their lives, it can be confusing to think that you may require Medicaid — a government program designed for individuals with limited resources. Our Gwinnett County estate planning lawyers can clarify.

Nursing home care is extremely expensive. According to Seniorliving.org, the average cost of a private room in a nursing home in Georgia in 2022 was nearly $8,900 per month. For one year, that would be a cost of $106,488. Medicare — which older adults rely on for medical coverage and care — does not cover this cost. As such, many seniors would need to spend a substantial portion of their lifetime savings in order to pay for nursing home care. To avoid this, it is important to consider long-term care planning, and Medicaid planning, with help from a lawyer.

Protecting Your Assets and Covering Long-Term Care 

There are various ways an estate planning lawyer can help you with long-term care and Medicaid planning. You may be able to establish a Medicaid Asset Protection Trust (or MAPT) to protect your assets while having sufficiently limited resources to qualify for Medicaid.

You can also work with an estate planning attorney to consider other options for long-term care in the future, such as purchasing long-term care insurance. However, it is important to know that you should not attempt to gift (i.e., give) assets to family members or friends in order to qualify for Medicaid. Doing so can incur penalties if the gifts were made during the five-year “lookback” period from the date that you require Medicaid to cover long-term care costs. An attorney can help you to avoid penalties while still protecting your assets.

Contact a Gwinnett County Estate Planning Lawyer 

Do you have questions about Medicaid or long-term care planning, or other questions about asset protection and your estate plan? An experienced Gwinnett County estate planning attorney at Bowman Law Firm can speak with you today to learn more about your specific needs, and we can help you to plan for the future. Contact us today to get started.

Sources:

medicaid.georgia.gov/long-term-services-and-supports

oig.hhs.gov/reports/featured/nursing-homes/#:~:text=According%20to%20Centers%20for%20Medicare,than%2015%2C000%20certified%20nursing%20homes