How to Create the Perfect Asset Protection Plan

The field of Elder Law is relatively new, but it continues to play an important role in helping families develop estate plans and begin to protect their assets. The key to creating the perfect asset protection plan is to create a situation where clients avoid depleting their assets should someone become ill and need long-term care.

If someone you love is already in a nursing home or requires another form of long-term care, an Elder Law attorney can help them qualify for Medi-Cal care benefits, and get the government to pay for those expenses with little to no share of costs.

What Can an Elder Law Attorney Do For You?

Helping a senior qualify for Medi-Cal starts with a skilled attorney with a thorough understanding of the rules and regulations of the program. A nursing home stay can cost anywhere from $9000 to $12000 per month and that impact on a person can be devastating to just about anyone’s financial situation.

In order to qualify for Medi-Cal care, a person can own their family home but not have more than $2,000 worth of assets (cash included). That person’s spouse, however, can hold a bit more money, but cannot exceed $119,220 worth of assets (not including the home).

If a person or couple exceeds these limits, the next step is to begin a “spend down” of those assets without destroying a family’s life savings. There are many strategies and ways for a person to move their assets around within the Medi-Cal rules and regulations and still qualify for the program. Yet, one of the biggest mistakes people make when trying to qualify for care is gifting away assets within 30 months of applying for the program. Medi-Cal incorporates a 30-month look-back program that allows the agency to probe into a person’s financial dealing up to 2.5 years in the past. If any illegal activity is found, Medi-Cal will disqualify an applicant from applying for up to five years (depending on the severity of the issues).

How to Setup an Asset Protection Plan

One of the final steps in creating a solid asset protection plan is to transfer the family home into a specific living trust in order to shield it from the Medi-Cal recovery process. Medi-Cal can and will come after the family home once the person receiving care has passed away. An experienced Elder Law attorney will help protect the home and other assets safe for family members to inherit.

If asset protection is on your mind, contact our team of expert attorneys at (800) 403-6078 for a FREE consultation today. We can help protect your assets and qualify your loved ones for Medi-Cal healthcare benefits. We look forward to serving you.

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Related Questions
  • How can I protect my home from Medi-Cal recovery?
  • How do I protect my real estate investments?
  • What is Asset Protection Planning?
  • Who can help me form an Asset Protection Plan?
  • What are the best asset protection strategies?
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