When Is It Too Late to Protect Assets?

Many people are accustomed to the concept of "protecting their assets," but few are clear on the details of how to do it.  The primary concern for clients is the loss of their assets to long-term care costs.  Most people believe they need to wait five years to protect their assets, and once they enter a nursing home, they believe it's too late.  The truth is, it's never too late to protect assets.  As the LWP™ Medicaid Calculation software shows, individuals can qualify immediately for Medicaid, even if they have assets in excess of half a million dollars.  The trick is to know the Medicaid laws and rules and how they apply to each client fact pattern. 

I'll use Mary as an example.  Mary called my office frantic because her mother was admitted to a hospital, and she was advised that mom would be going to a nursing home.  She immediately contacted her dad's lawyer to see what to do.  Dad's lawyer was swift to give them advice on protecting their assets from the threat of mom's impending long-term care costs.  Mary was thrilled that the lawyer showed them how to protect $175,000 of their $450,000.  Although they were losing $275,000, they were thrilled to protect the balance. 

Mary eventually called me because her sister knew me and insisted she get a second opinion.  When we put Mary's mom's fact pattern through our Medicaid qualification software, we were quickly able to determine that, in fact, Mary's mom qualified for Medicaid immediately and all $450,000 of her assets were safe and protected for dad, who still resided at home.  In fact, I run into dad frequently at breakfast, and six and a half years later, mom is still in the nursing home and he's still at home with 100 percent of his assets protected.  So, the question is not whether it is too late.  The question is, how much can we protect and how soon? 

It’s easy with the LWP Medicaid Calculation software. It shows you how.  If you would like a FREE demo of our Estate Planning Drafting Software click here to schedule a call now!

David J. Zumpano, Esq, CPA, Co-founder Lawyers With Purpose, Founder and Senior Partner of Estate Planning Law Center