“Chip Morrison is a great estate planning attorney. He helped make sure my 91-year-old grandfather has all of his business straight after a detrimental accident. Highly recommend. He has all of my future legal businesses.”
~Kurt T. Bellow, Jr.
What Are My Options?
Long-term care services can be incredibly expensive, and many individuals and families struggle with the cost of care. Fortunately, there are several options available for paying for long-term care in Louisiana. Here are some of the most common options:
- Private Pay: Private pay means paying for long-term care out of your own pocket. This option is suitable for those who have significant savings or assets to cover the cost of care.
- Long-Term Care Insurance: Long-term care insurance is an insurance policy designed to cover the cost of long-term care services. This type of insurance can be purchased through private insurance companies and can help to cover the cost of care not covered by health insurance.
- Medicaid: Medicaid is a federal and state-funded program that provides healthcare coverage to eligible individuals, including long-term care services. Medicaid eligibility in Louisiana is determined based on both income and asset limits. Individuals must meet both requirements to qualify for Medicaid assistance.
- Veterans Benefits: Veterans and their spouses may be eligible for long-term care benefits through the Department of Veterans Affairs. The VA offers several programs, including the Aid and Attendance program, to help cover the cost of long-term care services.
- Reverse Mortgages: Reverse mortgages allow homeowners to convert a portion of their home equity into cash. This cash can be used to pay for long-term care services.
- Life Insurance: Some life insurance policies may have long-term care benefits or riders that can help to cover the cost of long-term care services.
It is important to note that each option has its own eligibility requirements, benefits, and drawbacks. It is essential to consult with an experienced elder law attorney to determine which option is best for your specific situation.
Be sure to contact our office as soon as possible, the earlier you start planning the more you can preserve!
Will You Be Eligible For Benefits As You Age?
Our free long-term care calculator will help you discover if you have the assets needed to pay for your care. Medicaid benefits may be available to help pay for the cost of care, but without proper pre-planning, family resources must be largely or wholly depleted first, which means your assets could be lost to a senior care facility and/or the state of Louisiana.
Click Here to Use Our Free Medicaid Calculator
Use this calculator to help determine if the financial resources you have will cover your potential long-term care costs. If you don’t have enough, the next step is to contact us so that we can help you take a closer look at your eligibility for Medicaid, VA benefits, and other asset protection strategies that may be available.
Qualifying for Louisiana Medicaid
In Louisiana, Medicaid eligibility is determined based on both income and asset limits. Individuals must meet both requirements to qualify for Medicaid assistance. Here are some tips on how to qualify for Louisiana Medicaid:
- Meet the Income Requirements: In Louisiana, Medicaid eligibility is determined based on income and asset limits. To qualify for Medicaid, your income must be below a certain threshold. The income limit for Louisiana Medicaid varies depending on the program and the size of your household. It is important to note that income limits change annually, so it is essential to stay up-to-date on the current income limits.
- Meet the Asset Requirements: In addition to income limits, Medicaid also has asset limits. Your assets, including cash, savings, and property, must be below a certain threshold to be eligible for Medicaid. In Louisiana, the asset limit for Medicaid varies depending on the program and the size of your household.
- Consider Medicaid Planning: Medicaid planning involves taking steps to protect your assets while still being eligible for Medicaid assistance. Some common Medicaid planning strategies include setting up Medicaid Asset Protection Trusts, transferring assets to a spouse or family member, and spending down excess assets.
- Seek Professional Assistance: Medicaid rules and regulations can be complex, and it can be challenging to navigate the application process on your own. Seeking professional assistance from an experienced elder law attorney can help ensure that you meet all the eligibility requirements and receive the benefits you are entitled to.
Qualifying for Louisiana Medicaid can be a complex process. By planning ahead and seeking professional assistance, you can increase your chances of qualifying for Medicaid and securing the care you need for your future.
Are There Rules For Transferring Assets To Qualify?
Yes, Louisiana Medicaid has strict rules regarding asset transfers to prevent individuals from transferring assets to qualify for Medicaid assistance. These rules are in place to ensure that Medicaid resources are used for those who genuinely need them and not for those who have transferred their assets to their family members or loved ones.
In Louisiana, if you transfer assets for less than their fair market value, you may face a period of ineligibility for Medicaid. This period is also known as a penalty period. During this period, you will not be eligible for Medicaid benefits, even if you meet all other eligibility requirements. The length of the penalty period is based on the value of the transferred assets.
The penalty period is calculated by dividing the value of the transferred assets by the average monthly cost of nursing home care in Louisiana. The resulting number is the number of months you will be ineligible for Medicaid benefits. For example, if you transfer assets worth $60,000 and the average monthly cost of nursing home care in Louisiana is $5,000, your penalty period will be 12 months.
There are some exceptions to the Medicaid transfer rules. For example, transfers made to a spouse, a disabled child, or a trust for the benefit of a disabled individual are generally not subject to the transfer penalty.
It is essential to consult with an experienced elder law attorney before making any transfers of assets. Attorney Chip Morrison can help you understand the Medicaid transfer rules and develop a Medicaid planning strategy that meets your needs while still complying with Medicaid regulations.
Don’t Go Broke Paying For Long Term Care in Louisiana
Long-term care services are not covered by most health insurance plans, and can be incredibly expensive. As such, it is important to plan ahead and consider Medicaid asset protection trusts as a viable option for long-term care planning.
How Does a Medicaid Asset Protection Trust Work?
In Louisiana, a Medicaid asset protection trust (MAPT) is a type of irrevocable trust that is designed to protect an individual’s assets from being counted towards their Medicaid eligibility for long-term care. The trust is established by the individual (or their spouse) and funded with assets that would otherwise be countable towards Medicaid eligibility, such as cash, investments, and real estate.
Once the assets are transferred into the MAPT, they are no longer considered to be owned by the individual and are therefore not counted towards Medicaid eligibility. However, the individual must wait a certain amount of time, known as the look-back period, before they can apply for Medicaid coverage for long-term care. In Louisiana, the look-back period is five years.
During the look-back period, any transfers of assets into the MAPT may be subject to penalties that could delay Medicaid coverage. However, once the look-back period has passed, the assets in the MAPT are protected and can be used to pay for the individual’s care without affecting their Medicaid eligibility.
It’s important to note that once assets are transferred into the MAPT, they cannot be accessed by the individual, and the terms of the trust cannot be changed. Additionally, any income generated by the assets in the trust must be used to pay for the individual’s care and cannot be distributed to the individual or their family.
Overall, a Medicaid asset protection trust can be an effective tool for protecting assets from being counted towards Medicaid eligibility for long-term care in Louisiana, but it’s important to consult with an attorney who specializes in estate planning and Medicaid law to ensure that the trust is set up correctly and in compliance with state and federal laws.
You Don’t Have To Do This Alone
At Morrison Law Group PLC, we understand the complexities of Louisiana Medicaid planning and asset protection. Our elder law attorney, Chip Morrison, can help you protect your assets while still being eligible for Medicaid assistance. We offer a variety of Medicaid planning services, including:
- Medicaid asset protection trusts
- Long-term care planning
- Medicaid eligibility planning
Our goal is to help you and your loved ones receive the necessary long-term care services without having to spend all your life savings on healthcare. By working with us, you can rest assured that your assets are protected, and you have a solid plan in place for your long-term care needs.
We understand that every client’s situation is unique, and we take a personalized approach to each case. We will work with you to assess your individual needs and develop a tailored plan that fits your unique circumstances.
Timing is EVERYTHING
The time to plan is BEFORE a health crisis occurs. If you wait, you may find that your options are limited in a crisis situation. Contact us so that we can help you plan for a smooth transition as you age, without going broke in a nursing home or handing over your children’s inheritance to the State.
Do not delay in taking the first step. If you are considering Medicaid planning or have questions about planning ahead for long-term care services in Louisiana, please contact us today for a consultation. (504) 831-2348.
