Concerned about clients being misled by misinformation about nursing homes and people's assets, Wilmington, NC, Estate Planning Attorney Kelly Shovelin has stepped up to address these pressing issues. —
For more information please visit https://www.fourpillarslawfirm.com
In a recent interview, the Four Pillars Law Firm founder zeroed in on four persistent myths.
The first myth was what happens to your assets? Shovelin was unequivocal in addressing the matter, stating: "There is a lot of misinformation about what happens to your assets when you are admitted to a nursing home. These myths often result in hard-earned assets being poorly protected or unprotected altogether."
A widespread misconception is that an individual in nursing home care can give away $15,000 per person a year without penalties.
Shovelin said: "The $15,000 limit applies to federal gift tax and does not have anything to do with applying and eligibility for Medicaid, which is a financial aid program.”
"Medicaid gifting rules differ: You will be penalized and not qualify for Medicaid benefits for some time if any gifts you make are divestments."
She explained the second myth was ‘Medicaid-Friendly Annuity’ “Many older adults mistakenly assume that buying a Medicaid-friendly annuity will act as a robust asset protection plan.”
Shovelin said: "Getting a Medicaid pre-planning annuity isn't what it used to be. Changes in Medicaid laws at both the federal and state levels have meant that annuities may not be as helpful in planning and qualifying for Medicaid.”
"The downside to many supposed Medicaid-friendly annuities is that they are regular deferred annuities. Many of the annuities have limited options when it comes to qualifying for Medicaid and can narrow the scope of protected assets if you are in a nursing home."
She rightly advised people to consult a legal professional before committing to investing in any annuity.
Another myth doing the rounds is that the state will seize assets when someone goes into a nursing home.
Shovelin asserted: "You don't have to hand over anything to the state. In other words, Medicaid won't dispense any money until you 'spend down' your countable or available assets. If you're not married, the amount to spend down to is $2,000 or less in cash and other countable assets."
There are more rules on qualifying for Medicaid, so she recommended consulting an experienced elder law attorney on this matter.
The last myth Shovelin talked about was… “You are never too late. Many who don't have an asset protection plan before going into a nursing home often think it's too late to get one. It's never too late to protect your assets. You can still qualify to receive Medicaid benefits even if you've been using private funds to pay for nursing home expenses for years."
With these four myths busted, Shovelin said the best advice to seek is from an experienced Elder Law Attorney. They will address the rules and regulations surrounding what you can and cannot do with your assets when seeking to qualify for Medicaid.
Name: Kelly Shovelin
Email: Send Email
Organization: Four Pillars Law Firm
Address: 2202 Wrightsville Avenue, Suite 213 Wilmington, NC 28403
Phone: (910) 762-1577
Source URL: http://RecommendedExperts.biz
Release ID: 89038618