What Families Should Know Before Applying for Medicaid After a Dementia Diagnosis
A dementia diagnosis is quite traumatic not only for the person affected but for their entire family as well. Beyond issues that concern healthcare and overall well-being, financial aspects are a constant source of worry as well. The cost of care provided by nursing homes might reach several thousand dollars per month. Therefore, Medicaid becomes essential for many Virginia residents. Unfortunately, waiting till you need long-term care means losing many options. Understanding Medicaid eligibility after a dementia diagnosis will help you make the right decision.
Timing is critical
People often believe that one must first place their loved one into a nursing facility before they can look into Medicaid. The fact of the matter is that by waiting, you limit your options.
The reality is that dementia is an advancing disease. This means that someone who is currently in control of their mental capacity can gradually lose it. Therefore, it is best to plan ahead and involve individuals in these decisions.
Understanding the Medicaid look-back period
One important consideration when it comes to Medicaid is the five-year look-back rule. When applying for Medicaid coverage for long-term care, the government considers specific financial transactions that were conducted over the past 5 years.
If assets have been transferred below fair market value, or you gave cash or property to family members or friends, these transactions could result in a penalty period if Medicaid does not provide assistance in paying for nursing home care.
A common misconception is that one can give away their house or bank accounts right upon being diagnosed with dementia.
Asset protection requires careful planning
Your finances are unique to your given situation. In some cases, you can benefit from approaches that protect your assets while obtaining Medicaid. There is a possibility that some people will need to update their power of attorney, change their beneficiaries, and manage their retirement accounts.
Each approach is determined by certain aspects, including marital status, income, resources, and the future need for long-term care. Since the Medicaid program has many nuances, it is better to take a personalized approach.
Legal documents matter
If you or a loved one was recently diagnosed with dementia, it’s important to have your estate planning documents updated. This way, a power of attorney for finances or health care can give authority to another individual to make decisions if the person suffering from dementia is incapable of making decisions on their own.
Not having these documents means family members will have to go through an expensive, lengthy, and often emotional process of appointing a guardian through the court.
Talk to a Virginia Beach, VA, Elder Law Attorney Today
It’s helpful for family members to have an experienced elder law attorney to help them assess their situation, explore possible solutions, and create a plan that secures their financial future. The Law Office of Angela N. Manz can help you and your family prepare for the future with comprehensive estate planning services. Call our Virginia Beach estate planning lawyers today to schedule an appointment, and we can begin discussing your next steps right away.