A reverse mortgage is another estate planning tool available to seniors which may fit into an appropriate plan for a particular case. Generally, it may be a useful tool when an individual has very limited assets or cash flow, and wants to remain in the home if it has a substantial equity. The senior must understand that such a loan may not require a payment to be made back each month, but they need to understand that such a loan and interest is a lien on the home which may diminish any inheritance they wish to establish with the home.
The Law Office of Michael Camporeale, P.C., can advise you if this option is the right thing for your particular situation.
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.