Planning for long-term care in Georgia requires careful consideration to ensure the safety of your assets. Common assets people have include home(s), vehicles, retirement accounts and personal belongings such as jewelry.
It is important to familiarize yourself with Georgia’s Medicaid eligibility rules. Medicaid has strict income and asset limits. Being aware of these limits can help you structure your finances effectively.
Establish a trust
Consider establishing an irrevocable trust as part of your long-term care strategy. This arrangement allows you to transfer assets into the trust, removing them from your personal ownership. This can be a valuable tool in protecting assets while still potentially qualifying for Medicaid.
Maximize exempt assets
Certain assets are exempt from Medicaid calculations. Your primary residence, personal belongings and one vehicle are examples of exempt assets. Strategically maximizing these exemptions can help you retain valuable property while ensuring Medicaid eligibility. Do keep in mind that estate recovery after death may occur, although estates worth less than $25,000 are exempt.
Purchase long-term care insurance
Investing in long-term care insurance can be a proactive step in safeguarding your assets. This type of insurance can cover the costs associated with long-term care services, reducing the financial burden on your estate.
Explore veterans benefits
If you or your spouse is a veteran, explore the possibility of accessing Veterans Affairs benefits for long-term care. These benefits can significantly contribute to covering the costs, allowing you to preserve your assets for other needs.
Implement gifting strategies
Consider implementing gifting strategies to reduce your overall asset value. While outright gifts can affect Medicaid eligibility, strategic gifting within the allowable limits can be an effective way to transfer assets to heirs while meeting Medicaid requirements.
Long-term care planning in Georgia demands a proactive and informed approach. Fortunately, you can secure your assets and ensure a financially stable future, even in the face of long-term care challenges.