Gifting, changing title to the home,
transferring cash or assets of any type without
knowing or understanding the consequences of such
transfers. Making uninformed financial
decisions may result in extended periods of
taking advantage of all spend down and exemption
funding opportunities. Is there a mortgage
that can be paid off? Are there home repairs
that can be made? Are there items that can be
pre-paid? Have funeral plans been made?
Failing to take advantage of protections
for the spouse. The Omnibus and
Reconciliation Act of 1993 provided important
protections so the spouse of a Medicaid recipient
still living in the community does not have to be
Planning too early or too late. As soon
as it is recognized that long-term care services
will be required, it is important to begin looking
into these matters. Conversely, just because a
person is already receiving care does not mean that
Elder Care Financial Planning should not take place.
Assuming Medicaid caseworkers will help
with planning. Beyond completion of the
application, Medicaid employees are specifically
instructed not to advise clients on
Not planning for post-Medicaid consequences.
More aggressively then ever, the Federal and
respective state governments are seeking repayment
of benefits from beneficiary estates. What
will happen when the Medicaid recipient passes away?
What happens when the community spouse passes away
either after or before the recipient? What
about the home?
Not considering the tax consequences of financial
transactions. The movement of money often
creates taxable events (capital gain, income and/or gift and
estate). Strategically avoiding these taxes or
making sure funds are available to pay them should
be part of your planning.
Going it alone. Elder Care Financial
Planning contains a universe of issues. Seek professional