Like most people, you probably expect to pass your assets on to a loved one when you die. A home is often especially significant when it has strong sentimental ties. If you hope to keep your house and other assets in the family, it is important to plan for the future.
In Texas, you may need to apply for Medicaid assistance if you require long term care. When you pass away, the state will seek to recover the costs of your care. A Texas Medicaid estate recovery program lawyer can help you make the right decisions to protect your assets.
At Marc Whitehead & Associates, our Texas Medicaid eligibility and asset protection lawyers have over 120 years of combined experience.
Contact us today and learn how we can help you preserve your assets and Medicaid eligibility.
What Is Medicaid?
Medicaid is a federal public insurance program operated under a partnership between the state and federal government. It provides healthcare funding for low-income individuals who can demonstrate need and qualify for the program.
If you have sufficient income, you likely aren’t reliant on Medicaid for your healthcare. That can change if you require long-term care in a skilled nursing facility. Depending on your needs, residence in a skilled-nursing facility in Texas can cost $6,000 per month or more.
If your monthly income exceeds the cost of your care, you can pay out of pocket with no concerns over your assets. If it doesn’t, you must spend down your assets until you are eligible to apply for Medicaid.
Medicaid Estate Recovery In Texas
Medicaid spend-down in Texas is also known as the Medically Needy Pathway. You must use your available assets, such as your savings, to pay for your care. If you give away or sell an asset for less than fair market value within five years, you risk losing your Medicaid eligibility.
Once your assets are reduced to a specific level, you can apply for Medicaid. At that point, Medicaid will cover the costs of your care that your income doesn’t, and you will accrue a debt. When you die, the Texas Medicaid estate recovery program can file a claim against your estate.
Some assets are exempt from the spend-down process. Usually, you will not need to sell your home to be eligible for Medicaid in Texas.
However, it may be part of the estate recovery if you fail to protect it. Speak with a Texas Medicaid estate recovery program attorney to understand your options.
How a Texas Medicaid Estate Recovery Lawyer Can Help
The assistance of a knowledgeable Medicaid estate recovery program lawyer in Texas is essential throughout the estate planning process and when dealing with state Medicaid regulations. Some of the ways your attorney may be able to help include:
Medicaid Eligibility and Estate Recovery
An attorney can help you understand the intricate details of Medicaid eligibility and estate recovery. Texas has specific rules regarding which assets are subject to recovery and which are exempt, and having a knowledgeable lawyer in your corner can help you make informed decisions.
Pre-Death Medicaid Planning
Some of the most effective strategies for protecting your assets from the Texas Medicaid estate recovery program involve choices you make long before you need to apply for Medicaid. There is a 5–year lookback period where Medicaid will consider your assets for eligibility, so planning is crucial.
Asset Protection and Spend-Down Strategies
To remain eligible for Medicaid, you must follow specific guidelines concerning management of your assets during the five years before your application.
Your Medicaid estate recovery planning lawyer in Texas can help you come up with a strategy to avoid penalties while still protecting your assets.
Handling Life Estate Deeds
Life Estate Deeds, Transfer on Death Deeds, and Lady Bird Deeds present ways to retain partial control of your property while assigning a beneficiary to receive it after you pass away. In some instances, this can help protect your property from the Medicaid estate recovery program.
Appealing Medicaid Estate Recovery Claims
Your family can, in some cases, dispute and appeal Medicaid estate claims after your death. Your attorney can assess whether the recovery is valid under Texas state laws, or if it is possible to claim exceptions such as a Hardship Waiver.
Negotiating With Medicaid
In some cases, your attorney may be able to work with Medicaid and have some or all of your assets removed from the recovery process. This is most likely to happen when:
- The expenses of recovery and sale are more than the state would recoup
- The amount your estate owes is under $3,000
- Your estate is worth under $10,000
Ensuring the Rights of Survivors Are Protected
Other exceptions limit Medicaid’s ability to recover from your estate. A lawyer can help make sure your surviving loved ones are treated fairly by the state.
Situations where your estate may be fully or partially exempt from recovery include:
- A home is the residence of a surviving family member, such as a spouse, child under the age of 21, disabled child, or unmarried child who has resided there for at least one year.
- An asset is jointly owned by the decedent and another person
- A life insurance policy is paid directly to a designated beneficiary.
- Retirement accounts, pensions, and annuities
An attorney can help you or your family determine if you meet any of the eligible criteria to avoid Medicaid recovery.
Contact a Texas Medicaid Estate Recovery Program Attorney
As you get older, it is important to consider and prepare for all possibilities. Nobody ever expects to need Medicaid to help pay for medical care, but it happens to many people. The state may then seek to recover expenses after your death by claiming your assets.
A Texas Medicaid estate recovery program attorney can help you plan for a future where your estate is protected and you remain eligible for Medicaid. You have several options when it comes to holding on to a family home and other important assets.
Since 1992, our team at Marc Whitehead & Associates has helped people with complex legal issues. Contact us today to discuss your options for safeguarding your estate.