Long Term Care Insurance
There will be occasions when an individual can use long term care insurance as a key ingredient in Medicaid planning. Notwithstanding, it must be recognized that Medicaid is a means tested program, with financial limits on how much an individual may own and still be eligible. It is also a program that establishes periods of ineligibility for an individual who gives his or her assets away. Such periods can last for years.
Thus, after giving assets away, an individual may have to wait for as long as three or five years before applying for Medicaid. Therein lies the key to using long term care insurance in conjunction with Medicaid planning. With such insurance coverage in place, an individual can retain, use and enjoy all of his or her assets until such time as illness requires long term nursing home care. Then, the individual can directly, or through his or her attorney-in-fact of a previously executed Durable Power-of-Attorney, transfer all of the assets and enter the nursing home.
The transfer of assets will create a Medicaid period of ineligibility. The long term care insurance policy will then pay the nursing home bills. Assuming the benefit period is equal to or in excess of the shorter of the ineligibility or look back period for Medicaid after transferring the assets, the individual will be eligible for Medicaid when the insurance benefits run out.
The Law Office of Michael Camporeale, P.C., can help recommend and or evaluate a certain policy in order to determine if it is the right one for your needs.