Long-term care can cost thousands of dollars every month. That is why many Ohio families worry about how they will pay for nursing home care.
Without a plan, the government may take money from a person’s estate to recover Medicaid costs. An estate plan can help protect assets and keep them in the family.
Medicaid rules can affect your estate
Medicaid helps pay for long-term care when a person has few assets. In Ohio, a person must meet strict financial limits to qualify. If a person has too many assets, they must spend them down before Medicaid pays for care. This can drain savings quickly. Even after death, the state may try to recover the cost of care from the person’s estate.
Use of trusts in estate planning
Certain types of trusts can protect assets from nursing home costs. An irrevocable trust can move assets out of a person’s name. This means those assets do not count toward Medicaid’s financial limits. For this to work in compliance with Ohio law, the trust must follow specific rules and must be in place for at least five years before applying for Medicaid.
Protecting the family home
In Ohio, the family home may count as an asset unless a spouse or dependent lives there. A trust can help protect the home by moving it out of the person’s name before applying for Medicaid. Timing is important because transfers made during the five-year look-back window may cause a penalty.
Planning early gives families more options. Once someone enters a nursing home, it may be too late to protect assets. A solid estate plan can guard against losing a lifetime of savings to care costs and make sure property passes to loved ones. Ohio families should not wait to start planning.
