This is a $10,000 question, and the answer is no. Medicaid will pay for convalescent care after an injury or illness, but it does not cover the custodial care that nursing homes provide.
These facilities are very expensive, so the cost can be devastating if you have to pay out of your pocket.
Is Medicaid only available to financially needy individuals?
Yes, Medicaid is a need-based program, and there is an asset limit of just $2000. However, some things do not count, including your home with an equity limit that is significantly higher than the median cost for a single-family home in Cincinnati.
That’s the good news about home ownership, but there is also some bad news. If you are in direct personal possession of a home at the time of your passing, Medicaid could place a lien on the property.
Can you give away assets to qualify for Medicaid?
Absolutely, and this course of action is sometimes called a Medicaid “spend down.” You can give direct gifts to your loved ones, or you could alternately convey assets into an irrevocable Medicaid trust.
If you use a trust, you would be able to receive income that is generated by the assets, but you would no longer have access to the principal.
Timing is the key to the successful execution of the strategy. You have to fund the trust at least five years before you submit your application for Medicaid or a Medicaid waiver.
Why do young couples need an estate plan?
While many people think of senior citizens when they consider who should make an estate plan, older people are not the only ones who benefit from planning. In fact, for young couples and young families, the estate planning process can be especially important. If the couple has a young child, instructions must be provided for who should become that child’s guardian if something should happen to the parents. There must also be provisions made for the child’s financial support if the parents pass away. If a young couple is not yet married but wishes for their assets to be left to each other or their partner to act as their agent in case of incapacity, estate planning is also necessary to make that happen. Learn more about why young couples need an estate plan here.
Is it common for people to live into their mid-80s?
This is an interesting question. The average lifespan is 78 years or so, but this includes people that pass away while they are still young.
Once you reach the age of 67, your life expectancy is 85 years if you are a man, and it is 87 years for a woman. You become eligible for a full Social Security benefit when you are between 66 and 67. If you think you will live long enough to get a benefit, this will be your life expectancy.