Medicaid and Late Life Planning

By Anthony Cooper

One area that we sometimes neglect to consider is what happens to my assets if I need to enter a  long-term care facility. Your assets can simply be your home that you hope to convey to a family member or friend after you die. Long-term care later in life might be hard to consider, especially when we are in  good health. However, we cannot put off planning out of fear. If you already have an estate plan in place, then you are already ahead of the game. If you have had some type of estate planning, hopefully you considered what happens if you need to enter a long-term care facility. If you do not have an estate plan, your lifelong savings and retirement may be at risk if you suddenly need to enter a long-term care facility. Nursing home care is expensive. According to the North Department of Human Services, the average nursing home facility daily rate in North Dakota is $313.08 a day, which is $113,000 annually. One option for paying for long-term care is Medicaid.  

Medicaid is a federally funded, state-administered, healthcare program for low-income individuals and families. Since the program is intended to assist low-income individuals, you must meet certain eligibility requirement. As such, one disadvantage to late planners is protecting your assets while navigating Medicaid eligibility. For example, single individuals in North Dakota are allowed to keep only $3,000 in assets when they apply for Medicaid, along with a reasonable burial policy. Married couples  with one spouse staying at home while the other is in a long-term care facility are allowed to keep one vehicle, the home, and a reasonable burial policy. The spouse in the nursing home can only keep $3,000, and the community spouse (the spouse that will stay at home) gets to keep half of the couple's countable assets but not to exceed certain North Dakota assets limits. If the Medicaid applicant's assets are over $3,000, it must be spent down. It is important to note, that gifting of any amount for a period of five years prior to applying to Medicaid may be classified as a disqualifying transfer.  

Planning and applying for Medicaid can be overly complex. For example, Medicaid has a five year look-back policy. This means that a Medicaid case worker will examine your financial records going back 60 months from the date you applied. They will also inquire about any transfer of property that took place 60 months prior to the Medicaid application. A transfer for less than fair market value during the look-back period may be disqualifying.  

Is it too late to begin planning? Will I lose all my assets if I suddenly need to enter a nursing home? Of course, it is always best to plan ahead for any unforeseeable event that may occur in your future, but the answer depends on your unique situation. That is where we come in. At the Boppre Law Firm, we have knowledgeable, experienced counsel, who will guide you every step of the way. Contact us below or call us today at 701-852-5224. 

If you have any questions about Medicaid and estate plans or want to get started on yours, feel free to give us a call at the Boppre Law Firm!