Scott Counsel PC - August 2020

Scott Counsel PC - August 2020

www.scottcounsel.com 856-281-3131

AUGUST 2020

The Importance of a 5-Year Plan And Why to Plan While You’re Still Healthy

While we all would like to rest easy knowing we can rely on Medicaid to cover our health care costs late in our lives, it’s unfortunately not something we can count on. That’s because of the “ five-year look- back period” here in New Jersey. The five-year look-back period essentially is the period of the five years leading up to when you apply for Medicaid benefits in which you cannot transfer any assets to any person, even if they’re a family member. If the state government finds that you transferred any assets in that five-year period, they will delay your eligibility for Medicaid, depending on the value of the assets you transferred. In New Jersey, the average monthly cost of nursing home care is just over $10,000. So, for every $10,000 worth of assets you transfer in the five years leading up to your application for Medicaid benefits, your eligibility for those benefits gets delayed one month. Say you transferred ownership of a $250,000 home to one of your kids. That would mean you’re ineligible for Medicaid benefits for over two years after you first apply for them. During those two years, you’ll have to pay for the cost of a nursing home and any other medical expenses out of pocket. That means you could end up using money that would have gone to your beneficiaries just to cover your own medical costs. Speaking from the perspective of a social worker, that means I can’t help that particular client during a penalty period. They’ll have to pay out of pocket for a caregiver or have a family member take care of them, which can be exhausting for adult children who already work full time and have kids. “With our help, all your assets will be safely in the hands of your beneficiaries, and you’ll be able to get Medicaid right when you need it.”

Many times, clients come to us in crisis mode. Their loved one might have just fallen seriously ill or been diagnosed with a rapidly oncoming terminal condition. By that time, it can sometimes be a little trickier for your loved one to become eligible for Medicaid benefits. That’s why we recommend that our clients get a five-year plan in place to preserve your legacy. With a five-year plan in place, you won’t have to worry about being ineligible for Medicaid benefits when the time finally comes to apply. With our help, all your assets will be safely in the hands of your beneficiaries, and you’ll be able to get Medicaid right when you need it. Transferring those assets while avoiding the scrutiny of the five-year look-back period can take a number of different forms. Based on your current financial situation, Scott Counsel can help you formulate a plan that will keep you and your beneficiaries in the best possible position if you find yourself in need of medical care and or assisted living. You shouldn’t have to wait until you’re in a state of crisis. Give our office a call today at 856-281-3131.

–Christa Ciocco-Fries

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THE LASTING IMPACT OF THE DEEPWATER HORIZON OIL SPILL LEGAL IMPLICATIONS WE CAN STILL SEE TODAY

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