The average Colorado resident spends years working and saving for the future. Some are able to acquire significant assets and look forward to enjoying their retirement; others scrimp and save in order to simply be able to retire. Regardless of one’s financial picture, though, the possibility of requiring ongoing care as the individual ages can be a concern. How to pay for such care and the need for Medicaid planning can become an issue.
One option is to pay for skilled nursing care with one’s own assets. Some individuals or families will have the necessary funds to be able to support this. Unfortunately, this option is not available to all those who will require such care.
This is where Medicaid planning becomes critical. In order to qualify for Medicaid assistance in funding such care, the individual typically must expend his or her funds and assets first; some assets are considered exempt. For example, if the primary home will still be utilized by a spouse, that home is considered exempt. Otherwise, disposable assets will need to be utilized first.
In order to protect assets, Medicaid planning is critical. While it may appear that simply transferring assets to another individual will solve the dilemma, this is often not the case. When the Colorado resident applies for Medicaid nursing home benefits, the process of determining eligibility will begin. A review of assets and how they were transferred over an extended period of time will be necessary. There are, however, was to prepare and protect assets; an experienced attorney can work with the individual and/or family to determine the best way to prepare.
Source: bizjournals.com, “What to do with assets before moving a loved one into memory care“, May 14, 2018