Medicaid Video Series
Our Centennial Medicaid Lawyer Explains Medicaid Mistakes to Avoid
In our new video series, Centennial Medicaid lawyer Skipton Reynolds talks about common mistakes that people make surrounding Medicaid and how to avoid them. Use our video guide below as a free resource to better understand these Medicaid mistakes. If you have additional questions about your Medicaid application and how to protect your assets, call us at (720) 613-2633 or contact us online to schedule a consultation with us.
Mistake #1: Failing to Pre-Plan
One of the first mistakes that people make surrounding Medicaid is failing to pre-plan. These pre-planning fails include not:
- Buying long-term care insurance. This insurance helps cover costs associated with your long-term care.
- Saving enough money. If you do not have enough resources to pay for a high level of care, it can deplete your resources quickly.
- Taking advantage of specialized asset protection trusts. With these trusts, you can remain in control of your assets, but you can also protect what you want from your long-term care risk.
Mistake #2: Thinking It’s Too Late to Plan
Thinking it is too late to plan or protect some of the money that is left when you need long-term care is another mistake that many people make surrounding Medicaid. There is a misconception that people need to spend their assets down to the right value to be eligible for Medicaid benefits. However, in Colorado, there are exceptions to the rules that many people do not understand or know.
In this video, we discuss how an experienced Medicaid lawyer can help you shelter your assets and be eligible for Medicaid.
Mistake #3: Giving Assets Away Without Consequences
In this video, Medicaid lawyer Skipton Reynolds discusses another mistake that people make surrounding Medicaid. This mistake is giving assets away as a gift without considering the consequences of those gifts. These consequences include:
- Medicaid look-back. This means that if you gave a gift within the last five years, Medicaid could look back at that.
- Getting your assets back. If you give your assets away, you have no control over them.
- Liability risk. When you give your assets away, you also transfer liability of those assets. For example, if you give your house to your adult child, and someone sues for premises liability, then your child may be liable for damages.
- Taxes. If you give away your assets, such as your house, there may be greater tax implications than you realize.
Mistake #4: Not Knowing Safe Harbors
Another Medicaid mistake that people make is ignoring or not knowing about safe harbors within the Medicaid rules. Safe harbors are provisions that grant protection to individuals if certain conditions are met. In this video, our Medicaid attorney discusses exemptions under these safe harbors, including specific transfers of assets and real estate exemptions.
Mistake #5: Failing to Take Spousal Protections
This video applies to couples, not single individuals. In this video, Medicaid attorney Skipton Reynolds discusses the mistake of failing to take advantage of protections granted to the spouse who is not going into care. The spouse who is not going into care is known as the “community spouse.” When you have a community spouse, there are exceptions to the “assets” standard of qualifying for Medicaid.
Exempt assets for the community spouse in Colorado in 2021 include:
- Primary residence
- One vehicle
- Up to $130,380 at the time of application
In addition, the “community spouse” can start accumulating assets again after the date of application. Learn more about these spousal protections in the video below.
Get Legal Help With Your Medicaid Application and Protecting Your Assets
At Skipton Law, LLC, we focus on assisting individuals and families with estate law matters, including Medicaid issues. Medicaid is complicated because it has many rules and exceptions that people do not know about. If you need help filing your Medicaid application, appealing a Medicaid rejection, or protecting your assets, consider reaching out to us. Call us at (720) 613-2633 or contact us online to get started.