• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • Scott P. Schomer Certified As Specialist In Estate Planning, Trust And Probate Law
    • Trust and Probate Litigation: Verdicts and Settlements
  • Services
    • Legacy Planning
    • Probate
    • Asset Protection & Business Planning
    • Trust Administration
    • Trust, Probate and Estate Litigation
    • Estate and Gift Tax Figures
    • Family-Owned Businesses
    • IRA & Retirement Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Power of Attorney
    • SECURE Act
    • Special Needs Planning
    • Young Families
  • Probate
    • Is Probate Always Necessary In California?
    • Why Hire A Probate Attorney
    • Probate Administration
    • Probate & Estate Planning Savings Calculator
    • Probate Code 850 Petitions
    • Probate Disputes
    • Probate In California
    • Probate Laws
    • Probate Litigation
  • Elder Law
    • Conservatorship
    • Coping with Alzheimer’s
    • Estate Planning
  • Resources
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
    • Estate Planning
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Special Needs Planning Can Protect Benefits
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Free Seminars
      • Webinars
    • Frequently Asked Questions
      • Advance Health Care Directives
      • Asset Protection
      • California Adult Conservatorship
      • Estate Planning
      • Estate Planning & Remarriage
      • Frequently Asked Questions For Families Without An Estate Plan
      • In-Home Elder Care
      • IRA Inheritance Planning
      • IRA & SECURE Act
      • Irrevocable Trust
      • Last Will and Testament
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Living Trust
      • Probate
      • Social Security & Medicare
      • Special Needs Planning
      • Trusts
      • Trust Administration
      • Wills
    • Newsletters
    • Pre Consultation Form
    • Presentation
    • Published Book
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Communities We Serve
    • Los Angeles County
      • Bellflower
      • Cerritos
      • El Segundo
        • El Segundo Probate Resources
      • Hawthorne
      • Inglewood
      • Long Beach
        • Long Beach Elder Resources
        • Long Beach Probate Resources
      • Manhattan Beach
      • Playa del Rey
      • Santa Monica
      • Westchester
        • Westchester Elder Resources
        • Westchester Probate Resources
    • Orange County
      • Anaheim
      • Buena Park
      • Cypress
      • Fountain Valley
      • Garden Grove
      • Huntington Beach
        • Huntington Beach Elder Resources
        • Huntington Beach Probate Resources
      • Los Alamitos
        • Los Alamitos Probate Resources
      • Rossmoor
      • Stanton
      • Seal Beach
      • Westminster
  • Contact Us
  • BLOG
  • Videos

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Connect With Us Today (310) 337-7696

Attend a Free Webinar
Home » Medi-Cal Planning » The Importance of Medicaid Planning Regardless of Your Health

The Importance of Medicaid Planning Regardless of Your Health

November 17, 2017Medi-Cal Planning

Medicaid planningLike many people, you may feel that your good health means you shouldn’t have to plan for long-term care. The trouble with that thinking is your health status can change, especially 20 years from now. None of us can predict how healthy we will be in the future. Statistically speaking, at least two-thirds of individuals over the age of 65 will require some form of long-term care at some point. Ultimately, even if you are healthy now, you still need to consider Medicaid planning.

Why you should plan for long-term care

What many people don’t think about is the fact that the need for long-term care is not only brought about because of illness. Nor does it only provide medical treatment. You could suffer a catastrophic injury as the result of a car accident which could mean you will need long-term care of some type. Some people need long-term care simply because they need assistance with their daily activities, like grooming and dressing.

Health insurance does not always cover long-term care expenses

It is unfortunate, but some people miscalculate the real cost of long-term care, which is usually very expensive.  The average annual cost of long-term care in California is close to $100,000.  Consider also that nearly half of people 65 and older need long-term care for close to five years. Many people have the mistaken impression that Medicare and private health insurance are sufficient to cover the expense of long-term care.  In reality, these financial resources very rarely cover those costs.

How can Medicaid planning help you be prepared?

Medicaid benefits are meant to help low-income individuals pay for medical services. Because Medicaid is a needs-based benefits program, to be eligible you must have no more than $2,000 in assets.  Even though certain assets, like your home, are excluded, it is still very easy to deplete your savings before Medicaid will begin covering your long-term care expenses.  However, the goal of Medicaid planning is to keep you from exhausting all of your resources, while still being eligible for benefits.

Medicaid planning also helps to avoid fraud

Contrary to what some people think, you are not allowed to transfer your assets to someone else, in order to reduce your assets and qualify for Medicaid.  Medicaid is a “payer of last resort.”  That means Medicaid does not start paying for long-term care until all other payment sources have been exhausted.  Therefore, if an applicant for Medicaid gives away property or assets just before applying, those property transfers may result in your benefits being delayed or denied.  But, with careful Medicaid planning, you can still maintain control of your assets while qualifying for Medicaid benefits, when necessary.

What is the purpose of a Medicaid Trust

A Medicaid Trust allows you to protect your assets from Medicaid spend-down, to retain a limited income from the trust, and to leave any remaining funds to your beneficiaries. More importantly, a Medicaid trust allows you to remain eligible for Medicaid long-term care benefits. That way, you can have some money left over for your heirs, even after the high expense of long-term care.  The way it works is, once you transfer your assets to the trust, and the applicable waiting period has passed, those assets will not be continued in determining your eligibility for Medicaid.

It is possible to maintain some control

Although you cannot revoke an irrevocable Medicaid Trust, there are some ways to maintain some control over your assets, especially if you find that you don’t really need the trust.  There are cases where people create Medicaid Trusts, but then they never have the need to apply for long-term Medicaid benefits.  In those cases, there are some changes that you can make that will allow you to regain control of your assets.  If you retain the right to change the trustee of the Medicaid Trust, then you can have some control.

You are always entitled to the income from the trust

Another way to deal with the fact that a Medicaid Trust is irrevocable is to make use of the income from the trust, to which you are entitled to for your lifetime.  You can also make that income accessible to your spouse. Another option is directing how gifts from the principal are distributed to your children. The only restriction is that distributions from the principal cannot be made directly to you. Otherwise, your children are free to use their distributions in any way they choose, including spending them on you.

Disadvantages of a Medicaid Trust

A Medicaid trust offers the same asset protection as any other type of irrevocable trust.  However, it has a few disadvantages that other irrevocable trusts do not.  With a Medicaid Trust, the grantor is prohibited from using the trust assets for other healthcare purposes.  The limits on income are also a disadvantage.

Join us for a FREE seminar today! If you have questions regarding estate planning, trust contests, or any other trust administration issues, please contact the Schomer Law Group either online or by calling us in Los Angeles at (310) 337-7696, and in Orange County at (562) 346-3209.

#estateplanning, #schomerlawgroup, #medicaidplanning

  • Author
  • Recent Posts
Scott Schomer, Estate Planning Attorney
Scott Schomer, Estate Planning Attorney
A graduate of Boston University School of Law, Scott P. Schomer is a frequent lecturer on estate planning and elder law issues, having discussed these important issues on local and national television. A seasoned courtroom advocate, Scott has obtained combined judgments and verdicts in excess of twenty-five million dollars for his clients. Scott has served as a member of the Los Angeles Superior Court Probate Volunteer Panel (PVP Attorney), Probate Settlement Panel and a Judge Pro Tempore. Scott's expertise has been recognized by his peers with such accolades as a life-time membership in the Multi-Million Dollar Advocates Forum, the Five Star Wealth Manager designation, and repeated nominations as California Super Lawyer.
Scott Schomer, Estate Planning Attorney
Latest posts by Scott Schomer, Estate Planning Attorney (see all)
  • Does My Parent Need a Legal Guardian? - June 28, 2022
  • How Do I Pay Estate Taxes? - June 27, 2022
  • Tips for Long-Distance Caregivers - June 23, 2022

Other Articles You May Find Useful

Los Angeles Medicaid planning attorney
Understanding the California Medi-Cal Transfer Penalty Rules
Los Angeles Medi-Cal planning attorneys
Why Is It Important to Plan for Long-Term Care?
Medi-Cal
Top 5 Medi-Cal Myths
Los Angeles Medicaid planning attorney
Can Relying on Medicaid Threaten My Estate Assets After I Die?
Long Beach Medi-Cal planning attorneys
What is Medi-Cal Fraud and How Can You Avoid It?
Orange County Medi-Cal planning attorneys
I’m Young and Healthy. Why do I Need Medi-Cal Planning?

Primary Sidebar

Schomer Law Group, Los Angeles Estate Planning and Elder Law Attorneys

Schomer Law Group

FREE Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Testimonials

Client Review
July 29, 2020
    

We need to update our Living Trust and attended Schomer Law Group’s seminar. Afterwards we made an appointment and were impressed by the attention Scott Schomer and Liran Aliav gave to our case answering all questions and making suggestions how to minimize the estate tax. All the office staff is very friendly and we highly recommend Schomer Law Group.

Frank & Jutta R
Client Review
July 29, 2020
    

Mr. Schomer does an amazing job at explaining all the intricacies of establishing a trust. He and his team help you every step of the way so you always know what to expect and what you are preparing for. Best education you can get and the best gift you can give your family.

Paula M.
Client Review
July 29, 2020
    

We put off getting a trust for years. After attending a seminar with Scott Schomer we realized that the time had come to get a trust. We were given very good reasons for why we should get a trust. No pressure, just the plain facts. We are very relieved and happy to finally get our trust. Scott and Cesar were very knowledgeable, helpful and listened to our ideas of what we had to say. Any questions that we have now and in the future they are available to assist us to solve them. I recommend the Schomer Law Group and I wish we knew about them years ago.

Phillip G.
Client Review
July 29, 2020
    

When you’re presented with an invitation to attend in a mailer, you may have reservations, this was a truly gift!! My wife and I were educated and guided through the process of creating a family trust.
Both of our parents had attorney’s that “worked” with wills/trusts, but came up short. Fortunately, the Schomer Law Group was there! This is a group of attorney’s that only specialize in estate planning, law, and financial advice, so you know you’re getting expert and personalized advice. This is the best money we’ve ever spent!! Thank you!

Bob L.
Client Review
July 29, 2020
    

We knew we had to update our 10 year old ( 20 page ) trust. After several detailed meetings, Liran and Cesar produced a large ( 300 pages + ) highly detailed trust document that we have used to make sure our family estate is well managed and clearly understood.
They were all very helpful in answering myriad questions and explaining all the various options…

We would strongly recommend the Schomer Law Group to anyone with an estate of even modest means, to assure proper planning…

Bob S.
Client Review
July 29, 2020
    

We had contemplated updating our will and starting a trust for a number of years. After attending a talk by Scott Schomer we realized we were long overdue and the potential downside of not having our affairs in order was significant. Scott and his excellent team made the process simple and seamless. They were great listeners, addressed all our concerns and even pulled and processed all the paperwork from our financial institutions. If you are looking for assistance with estate planning, wills and trusts, we highly recommend Schomer Law Group.

Robert F.
Client Review
July 29, 2020
    

Very competent & informative – friendly atmosphere – ready to answer the most mundane questions – relaxed.

Joan S.
Client Review
July 29, 2020
    

Mr. Schomer was excellent in getting our family trust and estate affairs in order. My husband and I had put off doing this and Scott really made the process easy! He is very passionate in making sure his clients get all that they need and we really appreciated it. I would highly recommend him and look forward to the many years he will be available to assist our family.

Kim

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram

Blog Subscribe

  • This field is for validation purposes and should be left unchanged.

Office Address

El Segundo
222 North Pacific Coast Highway., Suite 130
El Segundo, CA 90245
Phone: (310) 337-7696
Fax: 310-337-1277

See Larger Map Get Directions

Office Hours

Monday9:00 AM - 6:00 PM
Tuesday9:00 AM - 6:00 PM
Wednesday9:00 AM - 6:00 PM
Thursday9:00 AM - 6:00 PM
Friday9:00 AM - 6:00 PM

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Schomer Law Group

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram

footer-logo
© 2022 American Academy of Estate Planning Attorneys, Inc.

Schomer Law Group

Attorney Advertisement.

© 2022 American Academy of Estate Planning Attorneys, Inc.