Creating a comprehensive estate plan that protects your assets, enables long-term care, and stands the test of time is one of the most important things a person can do in their lifetime. Proactive planning can save you money and safeguard your legacy, especially in the event of a long-term care crisis. There are many strategic measures that can be taken to improve the financial security of your retirement so that after five years, you can be confident you made the right choices.
You Earned It–Utilize Medicaid
A common concern many people have is if they have saved enough money to overcome inflation, live life comfortably, and leave enough behind to give their loved ones a financial boost. Life has a lot of unexpected situations, so it’s not always possible to anticipate just how much you’ll need in assets to live the lifestyle you want. Medicaid is a great public program that provides assistance for long-term care expenses, however, there are strict parameters to qualify. Medicaid is considered need-based, which means that those seeking benefits must meet the asset and income limits. These eligibility requirements may be subject to change at any time, making it imperative to plan for any eventuality.
Planning for the 5-Year Club
More often than not, many people end up needing medicaid to cover their long-term care, but don’t immediately qualify. This is why we developed estate planning strategies that enable people to be part of what we call the “5-Year Club.” Being part of the 5-Year Club means that you proactively planned to protect your assets and made it through the five-year Medicaid look-back period. The look-back period is a huge aspect of Medicaid eligibility. This is the time period the government reviews an applicant’s financial transactions and asset transfers. Any assets transferred within this period can be subject to penalties or completely disqualify applicants from the Medicaid program.
If you’re experiencing a long-term care crisis, the last thing you want is to allow medical bills and nursing home costs to eat into your estate. Estate planning tools like trusts can preserve the assets you have while shielding them from government review. This may enable you to qualify for Medicaid benefits, even if you have significant assets. The 5-Year Club feels good from the other side!
Creating Your Safety Net
A lot can happen in five years, and at the same time, five years can pass in the blink of an eye. There’s no way to know what the future holds, which is why it’s so important to start the 5-Year Club journey as early as possible. This level of planning can do more than just help you navigate the Medicaid application more easily. Qualifying for Medicaid can give you and your family peace of mind, knowing that it will provide relief from the financial stress of long-term care needs while retaining control of your assets.
You have worked hard for what you have and you deserve to enjoy it, too. To make sure that your estate plan is ready for the 5-Year Club, it’s essential to work with an estate planning attorney that has extensive experience helping clients preserve their assets in a variety of circumstances. The team at HighPoint Law Offices, P.C. is ready to help. Call our office today at (215) 997-9773 to secure your membership in the 5-Year Club.
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