As you or your loved ones age, it's essential to plan for long-term care and the associated costs. If you or your spouse were to end up in a nursing home, the cost could quickly deplete your life savings. Proper planning and the right legal guidance can help you protect your assets from being spent away on long-term care or being reclaimed through Medicaid recovery. In this three-part blog series, we will delve deeper into the different ways to protect your assets if you, your spouse, or both go into a nursing home under Ohio law.
Medicaid Qualification in Ohio:
To qualify for Medicaid in Ohio, you must meet specific requirements related to your income and assets. The state will examine your financial records for the past five years to ensure that you meet the eligibility criteria. Medicaid in Ohio will look at your income and asset transfers, gifts, and other financial transactions to ensure that you meet the eligibility criteria. This is why its so important to plan ahead. Last minute asset transfers won’t help you.
Asset and Income Thresholds in Ohio:
In Ohio, to qualify for Medicaid, you must meet certain asset and income thresholds. As of 2023, the asset limit for a single individual is $2,000, and the income limit is $2,382 per month. For married couples, the asset limit is $130,380, and the income limit is $3,216 per month. These thresholds are subject to change, so it's essential to consult with an elder law attorney who specializes in Medicaid planning.
Countable and Exempt Assets in Ohio:
While there the option to pay for your long-term care from your hard-earned savings and assets, many seek to qualify for Medicaid, which will pay for the cost of this care. Medicaid in Ohio has specific rules regarding the types of assets that are considered countable and exempt. Countable assets you can count like cash, bank accounts, investment accounts, etc. Exempt assets, on the other hand, are not counted towards the asset limit and include a primary residence, personal property, a vehicle, and certain types of trusts. Knowing which assets are countable and exempt is crucial to protecting your assets from Medicaid recovery.
Asset Recovery in Ohio:
If you or your spouse receives Medicaid benefits in Ohio, the state has the right to recover the costs of your care from your estate after your death. Estate recovery allows the state to seek reimbursement for the cost of your care. However, there are exemptions and protections available under Ohio law that can help you protect your assets from Medicaid recovery. A few examples of exemptions include a surviving spouse, a disabled child, or a child under 21 years of age.
Protecting Your Assets in Ohio:
To protect your assets from Medicaid recovery, you can use several legal strategies such as irrevocable trusts, annuities, and gifting. One popular strategy is the use of irrevocable trusts, which allow you to transfer assets into a trust, removing them from your estate and reducing your countable assets. The assets in the trust are protected from Medicaid recovery and can be passed on to your beneficiaries. An experienced elder law attorney can help you develop a plan that works for your specific situation.
In conclusion, understanding countable and exempt assets, Medicaid qualification, and asset recovery in Ohio is essential to protect your assets from Medicaid recovery. Knowing the legal strategies available can help you develop a plan that works for you and your family. If you have questions about Medicaid planning or need assistance with protecting your assets, please contact our law firm for a consultation.
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