What is Long Term Care Pre-Planning?
Few have the resources to cover nursing home costs.
The U.S. has a federal Medicaid program that will help pay for long-term care in various ways. However, to qualify for this program, you must spend down your assets and that leaves little money for other expenses.
Long-term care pre-planning is the use of estate planning vehicles within the state and federal law to shelter your assets from the cost of future long-term care.
Minnesota’s Medicaid Law
Each state administers the federal Medicaid program slightly differently while also ensuring their state program follows the rules and regulations of the federal Medicaid program.
In Minnesota, the state’s program for running Medicaid is called Medical Assistance (often referred to as MA). We will refer to it here as MN MA.
In July 2021, the Minnesota Appellate Court ruled that the Minnesota Medical Assistance law cannot supersede the federal Medicaid law regarding the use of trusts in long-term care planning.
This recent ruling should now allow you to shelter assets from the assets which are included in determining your spend down to qualify for Minnesota, Medical Assistance. We can help you determine which assets can be protected against future long-term care costs.
Long-Term Care Concepts to Know
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What are Spend Down Limits?
To help pay for long-term care costs, you may apply for Medicaid, the federal government-aid program that is administered through state-run programs.
Here, Medicaid is administered through the state program, Minnesota Medical Assistance (MN MA).
Before you can qualify for MN MA, you must spend down your remaining assets to a total value of $3,000.00.
Due to a recent July 2021 ruling by the Minnesota Appellate Court, that total may be different depending on how you shelter your assets.
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What is the 60-Month Lookback Rule?
When an individual applies for Medical Assistance, which is Minnesota’s state program that runs the federal Medicaid program, the county, where the person is applying, will inquire about any transfers of assets the individual made in the last five years.
If the individual transferred assets within the prior five years, those assets may be included in the assets needing to be spent down in order to qualify for Medical Assistance.
We help you determine how best to distribute gifts so they don’t prevent you from qualifying for Minnesota Medical Assistance.
Before you are unable to communicate your needs,
Protect Your Financial and Healthcare Decisions
Let Your Loved Ones Protect You
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Healthcare Directive (HCD)
A Minnesota Health Care Directive lets you choose a Health Care Agent to make your healthcare decisions on your behalf, when you are temporarily unable to communicate those wishes on your own.
It also lets you create a Living Will to list the life-sustaining treatments you’d like to receive either in an emergency or at the end of life. This provides peace of mind for both you and your Health Care Agent - knowing your wishes will be understood and honored.
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Power of Attorney (POA)
A Power of Attorney lets you choose an Agent, a trusted loved one, to make financial decisions on your behalf, until you are able; or if permanently disabled or ill, until your death.
There are different financial powers that can be granted to the Agent. Some may be needed for your situation while others may not.
We walk you through the options so you choose the right powers for your Agent given your needs.
Hear how the The Conversation Project began and why they believe in the importance of sharing your healthcare wishes;
it’s not about “what’s the matter with you,” instead, it’s about “what matters to you.”
Ready to begin pre-planning for long-term care?
Resources from the AARP
The American Association of Retired Persons, otherwise known as AARP, agrees you should have a Health Care Directive and Power of Attorney in place.
Read the AARP article on how a Health Care Directive can help your family - https://www.aarp.org/caregiving/financial-legal/info-2019/what-is-a-living-will.html.
This AARP video explains how to better prepare for hospital visits, whether planned or unplanned - https://videos.aarp.org/detail/video/6263554880001/preparing-for-a-hospital-stay:-what-to-know-before-you-go.
