As a Brandon Medicaid lawyer, I often meet seniors who are worried about paying for long-term care. When they learn about Medicaid’s “spend-down” requirements, many assume they’ll have to give all their money to a nursing home. This isn’t entirely true. There are several legal ways to use your assets while working toward Medicaid qualification, including planning ahead for funeral expenses.
What Is a Medicaid Spend-Down?
A spend-down means reducing your countable assets to qualify for Medicaid benefits. In Florida, this means getting below specific asset limits. However, not every dollar needs to go toward nursing home costs. You can use your funds thoughtfully to plan for other important expenses.
Prepaid Funeral Arrangements as a Planning Tool
One often-overlooked option is setting up a prepaid funeral contract. This arrangement serves multiple purposes:
- Takes care of an inevitable future expense
- Protects assets by converting them to an exempt resource
- Relieves your family of both financial and emotional burden
- Locks in today’s prices for future services
Making Sure Your Planning WorksÂ
For a prepaid funeral contract to work effectively with Medicaid planning, it needs to meet specific requirements. The contract must be irrevocable, meaning once it’s set up, you can’t cancel it for a refund. It also needs to comply with Florida’s regulations about funeral trusts.
Beyond Funeral PlanningÂ
While prepaid funeral arrangements are just one tool in Medicaid planning, they demonstrate an important principle: spend-downs don’t have to mean losing everything. Other exempt assets and planning strategies exist, but timing and proper structure are crucial.
Getting Professional GuidanceÂ
Every financial decision during Medicaid planning needs careful consideration. At the Law Offices of Laurie E. Ohall, PA, we help seniors understand their options and create plans that protect both their assets and their families’ well-being. Contact us at (813) 438-8503 to discuss how we can help you navigate Medicaid planning effectively.