Can the Elderly Qualify for Medicaid by Transferring Assets to Their Children?

Medicaid benefits are intended for use by individuals who fall at or near the Federal Poverty Limit (FPL), and require financial assistance to obtain the care they need. At one time, many families successfully flouted the intentions of Medicare by transferring the assets and income of their elderly loved ones, in order to place themselves in the FPL range. However, the laws tightened in 2006.  Still, Las Vegas elder law lawyer can help families put legal plans in place to help ensure that their elderly loved ones can receive all the benefits they deserve.

The federal Deficit Reduction Act (DRA) was signed into law with an eye toward providing states with the flexibility they need to reform their Medicaid programs and prevent waste, fraud and abuse. The many issues addressed in the Act include new options for the cost sharing of premiums with Medicaid recipients. The FPL provides the basis for this and other Medicaid decisions — including the ability of a senior to use Medicaid at all. For this reason, families sometimes attempt to hide incomes, or even the existence of other benefits, of their elderly loved ones. Since the enactment of the DRA, claimants who use illicit strategies that accelerate Medicaid qualification now face a penalty period that begins as of the date a recipient would normally begin collecting Medicaid benefits.

Of course, the laws are not designed to prevent seniors from taking advantage of the programs they need, even though more planning may be needed to protect the rights of your loved ones. For many baby boomers, now is the time to put plans in place to address an array of senior care issues. By working with experienced Las Vegas elder law attorneys now, to put long-term care insurance and other financial plans in place, you can protect your future while protecting your children from the need to make tough decisions on your behalf.

With more than three decades of experience helping clients develop comprehensive estate plans, the law firm of Tyrell Law, PLLC assesses the details of your specific circumstances, to help ensure that you have a long-range plan that works for you.  Contact us to learn how we can help you.