1. Thinking it’s too late to plan.
It’s almost never too late to take planning steps, even after a senior has moved to a nursing home.
2. Giving away assets too early.
First, it’s your money (or your house, or both). Make sure you take care of yourself first. Don’t put your security at risk by putting it in the hands of your children. Large transfers can cause difficult tax and Medicaid problems as well.
3. Ignoring important safe harbors created by Congress.
Certain transfers are allowable without jeopardizing Medicaid eligibility. These include: transfers to disabled children, caretaker children, certain siblings and into trust for anyone who is disabled and under age 65; a transfer to a "pay-back" trust if under age 65; and a transfer to a pooled disability trust at any age.
4. Failing to take advantage of protections for the spouse of a nursing home resident.
These protections may include, for example, purchasing a qualified immediate annuity, petitioning for an increased community spouse resource allowance, and, in some instances, petitioning for an increased resource or income allowance.
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5. Applying for Medicaid too early.
This can result in a longer period of ineligibility in some instances.
6. Applying for Medicaid too late.
This can mean the loss of many months of eligibility that could have otherwise been attained with careful advance planning.
7. Confusion about
the difference between lifetime liens on property and estate recovery.
The law with respect to liens
on property and estate recovery are complex and challenging in Colorado.
There are a number of statutorily created processes for the state
to follow in enforcing liens or estate recovery and numerous exceptions
to enforcement, as for example, a deferral for a surviving spouse,
dependent child or disabled child, or a hardship waiver.
8. Not getting expert
help.
Medicaid
eligibility is a complicated field that most people deal with only
once in their lives. Tens of thousands of dollars may be at stake
for costs of care. It’s penny wise and pound foolish not to consult
with an elder law attorney to seek guidance through the process.
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