Your potential need for long-term care is significant. In fact, studies have shown that those age 65 and older have a 70% chance of needing some sort of long-term care. And the costs of this care can be crushing. Even the most basic long-term care can cost tens of thousands of dollars per year, with some facilities costing more than $100,000 per year. If you have extensive savings, they can be quickly eroded by these costs, leaving you with little or nothing to pass down to your loved ones. But if you’re like a lot of Wisconsinites, you probably don’t have that kind of savings. So, how are you supposed to meet your long-term care needs?
One option is to turn to Title 19 for assistance. This program is a joint venture between the federal and state government to ensure that people in need can access Medicaid benefits. Let’s take a closer look at some of the finer points that you need to be aware of if you intend to seek this kind of support.
How is Title 19 eligibility determined?
Not everyone qualifies for Title 19 Medicaid assistance. Generally speaking, the government will assess your income and your assets to determine if you qualify for Medicaid assistance. For example, a single individual can only have about $2,000 of countable assets. Couples can have more assets, but there’s still a significant limitation on them.
That said, there are several assets that aren’t considered “countable” for Title 19 eligibility purposes. Much, if not all, of your home’s equity is exempt from eligibility consideration. You can also exempt one vehicle, many of your household and personal possessions, pre-paid burial arrangements and life insurance policies.
There are also certain types of property transfers that shouldn’t affect your eligibility. This includes transferring assets to your spouse, transferring ownership of your home to a child who is under the age of 21 or who has lived in the home for at least two years and has provided care that has prevented the need for a long-term care facility stay, and transfers of property to a disabled child.
Beware of the Medicaid lookback period
When you apply for Title 19 Medicaid assistance benefits, the government will analyze your eligibility by looking back five years. If there was no lookback period, then an individual who can pay for their own care could simply give away or transfer ownership of their assets the day before they intend to incur long-term care costs, thus allowing them to qualify for government assistance. The government wants to prevent this from happening, which is why they lookback five years to see what your assets and income have looked like during that period and to determine if you qualify for assistance.
What does this mean for you? It means that if you want to rely upon Title 19 Medicaid assistance, then you need to start planning now. The sooner you can develop your legal strategy, the sooner you can qualify for the care benefits that you may need.
Confidently navigate your long-term care planning
The rules associated with Title 19 Medicaid eligibility are complicated, and the unique facts of your circumstances can significantly change the approach that you take. That’s why you need competent guidance on your side as you navigate your estate and long-term care planning. By being diligent, you’ll hopefully be able to find the path forward that protects your potential long-term care needs while also shielding your wealth for later distribution to your loved ones.
