As you grow old, you need to start thinking about whether you’ll require long-term care. Although you may not want to think about your options, it’s wise to understand that 70% of Delaware residents aged 65 and above will require this care. It might not be the old age you wished for, but paying for long-term care is essential.
Medicaid and long-term care insurance are some of the top ways for paying for long-term care. Medicaid, however, requires eligibility and is essential for people with low income. If you don’t want to spend money and choose to apply for Medicaid, here are some options for you.
Asset protection trust
Asset protection trusts are among the best Medicaid asset protection strategies. The trusts provide you with the option of dividing your assets among your family. However, when you pass on, the assets will remain with the same people. The benefits are that the beneficiaries will not pay tax on the assets. Once you transfer the assets, you cease being the owner.
Medicaid strictly selects eligible people. Thus, you might be disqualified if you earn more than the set limits. To gain eligibility, income trusts can help you. Although irrevocable, income trusts will hold the money that exceeds the set limits. While most states allow you to spend some of the money, others have strict laws against you spending the money in income trusts.
Caregiver agreements are agreements that can enable you to use services not provided by Medicaid. The catch is that a family member must leave their job to provide you with the necessary care. To ensure eligibility for Medicaid, their services can be paid upfront. The agreement includes:
- The services required and the number of hours to work
- A mandatory daily log of services provided
- Unearned amounts
- Payment for all services provided
Do you require more information on Medicaid eligibility? Contacting an attorney for more details could be in your best interest.