Morris Hall, PLLC

Estate Planning Attorneys

MakePayment with multiple options
CALL NOW: 1 (888) 222-1328
  • Home
  • Our Firm
    • About Morris Hall
    • Attorneys
    • Our Team
    • Morris Hall Core Values
    • Communities We Serve
      • Arizona
        • Carefree
        • Flagstaff
        • Mesa
        • Oro Valley
        • Phoenix
        • Prescott
        • Scottsdale
        • Sedona
        • Tucson
    • Career Opportunities
  • Our Services
    • Asset Protection
    • Probate
    • Tax Planning
    • Trusts
    • Trust Administration
    • Wills
  • Resources
    • Blog
    • Do I Need an Estate Plan?
    • Elder Law Reports
    • Elder Law Resources
      • Phoenix Elder Law
      • Tucson Elder Law
    • Estate Planning Problems
    • FAQs
    • Probate Resources
      • Probate
      • Flagstaff Probate
      • Phoenix Probate
      • Sedona Probate
      • Tucson Probate
    • Published Books
      • Don’t Go Broke in a Nursing home
      • Tax Free Money for Long-Term Care!
    • Recent Law Changes and Improvements Affecting Arizona
      • Update My Living Trust
    • Reports
    • Videos
    • What to Do When Death Occurs
      • What Not To Do When Someone Dies
      • Who To Contact After A Loved Ones Death
  • Reviews
    • Testimonials
    • Review Us
  • Locations
  • Events
    • Seminars / Webinars
    • Past Webinar Recordings
  • Contact
    • Consultation Policy
    • Contact Us
    • Discounts

Will You Need Medicaid as a Senior?

March 13, 2018 by Wendy W. Harn Leave a Comment

Phoenix Medicaid attorneysAs you plan for your retirement years, you are likely focused on saving enough money to live comfortably when you reach your “Golden Years.” You may have a financial advisor who is helping you to project what your expenses will likely be and determine the best way to reach your retirement savings goals. One thing you may not have factored into your retirement plans yet is the likelihood that you, or a spouse, will need long-term care. If you do end up needing long-term care (LTC) you may find yourself turning to Medicaid for help covering the cost of that care. LTC expenses are something that should be considered within your retirement plans and your comprehensive estate plan. 

Will You Need Long-Term Care?

As you age, the likelihood of needing LTC increases dramatically. When you enter your retirement years, around age 65, you stand about a 50 percent chance of eventually needing LTC. If you are married, your spouse has the same odds. The longer you live, the more those odds increase. If you are still here at age 85, your odds will have increased to a 75 percent chance of one day needing LTC, and the cost of that care will be high. Nationwide, the average monthly cost of LTC runs about $6,500, or just over $80,000 per year as of 2016. 

How Will You Pay for LTC?

Like most seniors, you will probably rely on Medicare to cover the majority of your healthcare expenses. Unfortunately, however, Medicare only covers LTC expenses under very limited circumstances, and even then, only for a very limited period of time. Furthermore, most basic health insurance plans also exclude LTC expenses. Therefore, unless you purchased a standalone long-term care insurance policy prior to the need for coverage, you will be faced with the prospect of covering your LTC expenses out of pocket. For the average person, an entire retirement nest egg could be lost to LTC costs if forced to pay for them out of pocket. This is where the need to qualify for Medicaid comes in because Medicaid will help with LTC costs.

Qualifying for Medicaid

The possibility of getting help with your LTC expenses is certainly good news; however, qualifying for Medicaid benefits can be problematic for a senior who failed to plan ahead. Because Medicaid is a “needs based” program, applicants must have both income and assets below the program limit to qualify for benefits. Given that the “countable resources” limit (assets) is as low as $2,000 for an individual applicant in most states, it becomes easy to see how a senior might fail the asset test for Medicaid eligibility. If you fail the test, Medicaid will deny your application until such time as your countable assets fall below the acceptable limit. Simply giving assets away, however, isn’t a solution because Medicaid also uses a five-year “look-back” period that allows Medicaid to review your finances for the five-year period prior to application. If you made asset transfers for less than fair market value, Medicaid will flag those transfers and may impose a waiting period based on those transfers.
The best way to ensure that you will qualify for Medicaid benefits if you need them during your retirement years is to include Medicaid planning in your comprehensive estate plan now.  Doing so will protect your hard-earned assets and ensure that you are eligible for Medicaid benefits as a senior if you need them.

Contact MH Attorneys

If you have additional questions or concerns about long-term care costs and the need for Medicaid planning, contact an attorney at Morris Hall PLLC by calling 888-222-1328 to schedule your appointment today.

  • Author
  • Recent Posts
Wendy W. Harn
Wendy W. Harn
Attorney at Morris Hall PLLC
Wendy is actively involved in her community and serves in many capacities, focusing especially upon helping youth to establish good values and morals that will guide their future. Wendy’s three sons have grown in the ranks of the Boy Scouts of America and all have earned the rank of Eagle Scout. Wendy is proud of her membership with the Saddlebrooke Rotary Club, Make-A-Wish and the Funeral Consumers Alliance of Arizona.
Wendy W. Harn
Latest posts by Wendy W. Harn (see all)
  • Accepting Inheritances: Do I Have To Take It? - April 19, 2022
  • Estate Planning For Women: Is It Different? - November 2, 2021
  • Joint Tenancy Problems in Estate Planning - February 23, 2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

MH logo

Main Office

7600 N 16th St, Ste 105

Phoenix, AZ 85020

Phone: 602-249-1328

Fax: 602-248-2887

Subscribe to Our Newsletter

For a sample Click Here

Offices

Our law firm proudly serves many areas in Arizona. See all of our locations here.

Our law firm proudly serves the state of Arizona.  See all of our locations here.

Toll Free: 888-222-1328

Mon-Thur: 8:00am – 5:00pm
Fri: 8:00am – 4:00pm

  • Linkedin
  • Twitter
  • Facebook
  • Youtube
  • Instagram

Need an Estate Planning Lawyer in Arizona?

Looking for an estate planning attorney near you? We have office locations in Phoenix, Mesa, Chandler, Scottsdale, West Valley, Carefree, Prescott, Sedona, Flagstaff, Tucson, and Oro Valley in Arizona so please visit us at the location that is closest to you.

  • © 2023 American Academy of Estate Planning Attorneys, Inc All rights reserved.
  • Disclaimer