How to Protect Your Assets From Medicaid Recovery in Arkansas
No one should have to give up their home or family farm to get the long-term medical care they need. However, without proper planning, many people have no other choice. Medicaid is the largest source of healthcare coverage in the United States, but it comes with some strings attached — the government can make claims against your estate after you pass to recover the expenses they paid for your long-term healthcare. Beneficiary deeds are the cheapest, easiest way to protect your home and farm, allowing you to keep your property in your family rather than being forced to give it to the government after you’re gone.
It is important to note that any kind of pre-designation or distribution of property to protect the property from Medicaid recovery must be done at least five years before the property owner applies for Medicaid. This is because Medicaid does a five-year “look back period” to determine people’s eligibility for the program. Any property transferred within the fives years leading up to someone’s application for Medicaid will trigger a penalty of ineligibility for Medicaid, meaning that the person will be responsible for paying for their medical care out-of-pocket for a period of time.
Qualifying for Medicaid can also come with its own complications. Many Arkansans are stuck between a rock and a hard place when it comes to Medicaid; folks need long-term senior care at home or in professional facilities, but all they have is their house and retirement pension. So, they make just a little too much to qualify up front, but don’t have the trust fund savings to pay for their care out of pocket for the rest of their lives. In addition to beneficiary deeds, specialized Miller Trusts or Irrevocable Trusts can help fill that gap, and allow people to qualify for Medicaid.
If you need help qualifying for Medicaid or want to make sure your assets are protected in the event you need long-term home health care or nursing home care, call or email my office for a free consultation.
