Married couples generally work together to enjoy the best standard of living possible. They combine their resources and skills to support their family together. They plan to save for retirement and cover major future expenses jointly.
As couples start thinking about retirement and future expenses, they may need to prepare for the possibility that one or both of them may eventually require long-term care. They may need to move into a nursing home or could require the support of a home health aide to age in place later in life.
Planning in advance to qualify for Medicaid or MassHealth benefits can help couples ensure their physical well-being and financial stability in their golden years. How can married couples plan ahead to qualify for Medicaid when they retire?
With Medicaid trusts
One of the most powerful tools people use when planning for Medicaid and long-term care is a trust. Transferring certain property to a Medicaid trust makes it easier for applicants to qualify for benefits quickly. Provided that planning occurs at least five years before spouses need benefits, they can avoid the standard Medicaid penalty.
The trust can hold resources that might make spouses ineligible for benefits, such as well-funded financial accounts. Trusts can also protect assets that might be vulnerable to estate recovery efforts after either spouse dies.
With strategic gifts and spending
In some cases, spouses thinking about Medicaid/MassHealth eligibility may want to spend or gift some of their countable assets. Doing so gradually over several years before benefits are necessary can result in an enhanced standard of living while reducing the risk of a Medicaid penalty.
People may want to use their assets to pay off their debts or make improvements to their homes. They may travel or spend liquid capital on durable goods that they can enjoy during their golden years. Spouses may also need to consider taking on co-owners for certain assets, especially if they do not create a trust to hold their home and other resources.
Working together to plan for Medicaid or MassHealth eligibility can give married couples better control over their finances and peace of mind. Spouses who worry about their potential need for support in the future may benefit from planning in advance to quickly qualify for benefits and protect their resources if they ever make use of MassHealth coverage.