According to the US Department of Health and Human Services, seventy percent of people turning 65 years old will need some sort of long-term care in their lifetime. One in five will need long-term care for more than five years. As nursing home costs in Delaware average over $12,000.00 per month, many people are faced with spending their life savings on long-term care.
Medicare does not provide coverage for long-term or skilled nursing care. Long-term care insurance is cost-prohibitive to most elderly adults. People are left to either self-pay for nursing home care or seek coverage through Delaware Medicaid Long Term Care benefits.
A common misconception is that a person needs to spend down all of their assets on care before they will become eligible for Delaware Medicaid Long Term Care. That is simply not true. An elder law attorney can assist you in qualifying for Delaware Medicaid Long Term Care and sometimes protect up to all of your assets.
Without proper planning and the guidance of an elder law attorney, families often face overwhelming costs, denied benefits, and financial hardship when long-term care becomes necessary. Elder law addresses the legal and financial challenges older adults and their families face. Whether preparing for future care, protecting a loved one with special needs, or facing an unexpected Medicaid crisis, having an experienced attorney on your side makes all the difference.
At Brockstedt Mandalas Federico, LLC, our elder law attorneys understand that your future and your family’s well-being are too important to leave to chance. Careful planning today can prevent financial hardship tomorrow, and our firm is committed to providing the guidance you need to make informed decisions. When protecting what matters most, you deserve a legal team that acts with urgency and precision. We are here to help you secure the best possible outcome, without delay.
What Is Elder Law?
Elder law primarily involves estate planning, preparing medical and financial documentation for the unexpected, and establishing how you will care for yourself as you age. At Brockstedt Mandalas Federico, we focus on helping individuals prepare for both the expected and the unexpected, especially related to health and disability.
Long-Term Care Planning
Medicaid is a federal program, separately administered by each state, that provides benefits to individuals who need long-term medical support, whether in assisted living, a skilled nursing facility, or at home. With rising long-term care costs, many individuals rely on Medicaid to meet their needs. Many individuals also believe that before you can qualify for long-term care coverage, you have to “spend down” your assets. However, with careful planning, you may be able to qualify for long-term care coverage without sacrificing your ability to leave property to your loved ones.
Long-Term Care
Medicaid provides coverage for costs associated with long-term care, which may mean living in:
- A nursing facility,
- Assisted living, or
- Your home.
Coverage details may vary based on where you live.
Like other health insurance programs, Medicaid provides coverage only for medically necessary care. For long-term care to be medically necessary, you must need a “Nursing Facility Level of Care,” meaning, in short, that you need assistance with basic daily tasks.
Medicaid Long-Term Care Coverage Income and Asset Limits
Medicaid enforces strict asset and income limits when a person applies for Delaware Medicaid Long Term Care. Typically, a Medicaid applicant can only own $2,000 in assets and earn $2,417.50 per month to qualify for Medicaid. However, an elder law attorney can assist with exempt transfers, a Miller Trust, Medicaid gifting strategies, or a Medicaid Qualified Annuity to qualify a person for Medicaid even if they have too much money for Medicaid.
Pre-Planning and Crisis Planning
If you are able to pre-plan more than five years in advance of needing care, a Delaware elder law attorney can use a Trust to protect most, if not all, of your assets.
If you are facing a nursing home crisis and require nursing home care right away, a Delaware elder law attorney can typically obtain Medicaid Long Term Care coverage and protect half of a single person’s assets, and all of a married couple’s assets through Delaware Medicaid planning.
Medicaid Lookback and Penalty Periods
Delaware has a five-year Medicaid lookback period. If you made gifts in the five year period prior to applying for Medicaid long-term care, a penalty period will apply during which Medicaid will not pay for care. This can sometimes be avoided through intentional gifting for Medicaid long-term care coverage. A Delaware Elder Law attorney can advise you about gifting and other transfers and still qualify you for Medicaid.
It is important to notify your attorney of any gifts you made in the five year period prior to applying for Delaware Medicaid Long Term Care.
Special Needs Trusts
Special needs trusts form another crucial element of planning for medical needs for yourself or your loved ones. Like Medicaid, other disability benefits programs, such as Supplemental Security Income (SSI) and Social Security Disability, require you to have limited income or assets to become eligible or maintain eligibility. If you or a loved one on SSI, SSDI or Medicaid finds themselves with too much money or income, a Special Needs Trust can help preserve eligibility.
These trusts can be for someone else’s benefit—third-party trusts—or for your benefit—first-party trusts. There are strict requirements regarding when the Trust must be created, what assets may fund the Trust, what the Trust assets may be used for, and the beneficiary designation of the Trusts, that a Delaware Elder Law attorney can assist with.
Speak with an Elder Law Attorney Today
If you have questions about Medicaid, asset protection, planning for your or a loved one’s healthcare needs, or another elder law issue, reach out to us today.
At Brockstedt Mandalas Federico, our elder law attorneys have extensive experience helping clients across Delaware. We are available to meet with you to better understand your needs and get started working on comprehensive solutions to the issues that you are confronting. To learn more, give us a call or contact us through our secure online contact form.
