People in Colorado, and the United States generally, are living longer and healthier lives. The longer a person lives the more likely it becomes that he or she will require some form of long-term care. Medicaid is a principal provider of coverage for long term care but financial eligibility must be met to receive care. This makes Medicaid planning imperative before the need for the care arises.
One of the most prevalent concerns of people planning for the possible need of Medicaid coverage is preserving ownership of their home in the event of moving to a nursing home. Although the home is usually not counted for purposes of determining financial eligibility, it can be subjected to a lien by the State under its estate recovery program, as a means of recouping Medicaid expenditures. There are steps that can be taken to avoid this result.
Ownership of the home can be transferred to a spouse. This may protect it from possible future liens and also permit the spouse to retain all proceeds from a sale of the property. Other possible scenarios involve transferring ownership to a disabled child, or to a child who may be living in the home and providing care over a period of time.
Facing one’s own mortality and the possibility that present good health may not last forever can be a daunting.However, as with so many other things in life, planning for the unexpected in Colorado can simplify a difficult situation for all involved. Medicaid planning is no exception.