Leading estate planning attorney Brian M. Douglas, founder of Brian M. Douglas & Associates, LLC, addresses common myths surrounding nursing home care and asset protection. For more information please visit https://www.atlantagaestateplanning.com
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Leading estate planning attorney Brian Douglas has zeroed in on several myths circulating among clients about the impact of their assets when they seek nursing home care.
For more information please visit https://www.atlantagaestateplanning.com
What happens to a person's assets when admitted to a nursing home was the first to be addressed by the Founder of Brian M. Douglas & Associates, LLC, in Atlanta, GA. "There's a lot of misinformation around this topic and can often result in hard-earned assets being poorly protected or unprotected altogether," he said.
One widespread misconception is that an individual in nursing home care can give away $16,000 per person a year without penalties. Douglas said: "The $16,000 limit applies to federal gift tax and has nothing to do with applying to and eligibility for Medicaid. Gifting rules differ: You will be penalized and not qualify for Medicaid benefits for some time if any gifts you make are considered divestments."
The second myth centered on 'Medicaid-Friendly Annuity'. He said: "Many older adults mistakenly assume buying a Medicaid-friendly annuity will act as an asset protection plan. A Medicaid pre-planning annuity isn't what it used to be. Changes in Medicaid laws at both federal and state-level mean annuities may not be as helpful in planning and qualifying for Medicaid."
He added: "The downside to many supposed Medicaid-friendly annuities is they are regular deferred annuities. Many annuities have limited options when qualifying for Medicaid and can narrow the scope of protected assets if you are in a nursing home."
Another misconception is the state will seize assets when someone enters a nursing home. He asserted: "You don't have to hand over anything to the state. If you're not married, the amount to spend down to is $2,000 or less in cash and other countable assets."
‘’In other words, Medicaid won't dispense any money until you 'spend down' your countable or available assets.’’
Douglas said there is always time to develop an asset protection plan even after a loved one is in nursing care. "It's never too late to protect your assets. You can still qualify for Medicaid benefits even if you've used private funds to pay for nursing home expenses for years."
He concluded: "The overriding recommendation in addressing all these questions is to consult an experienced elder law and estate planning attorney before doing anything you may come to regret."
Source: http://RecommendedExperts.biz
Contact Info:
Name: Brian M. Douglas
Email: Send Email
Organization: Brian M. Douglas & Associates, LLC
Address: 900 Cir 75 Pkwy SE #800, Atlanta, GA 30339, United States
Phone: 770-215-8249
Website: https://www.atlantagaestateplanning.com
Release ID: 89127935
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