Iowa Medicaid Planning Lawyer

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Medicaid Planning Attorney in Iowa, IA

When people are planning their estate, they may be most concerned with wills and trusts. They may never think their estate might need protection from Medicaid, or that they will even need Medicaid in the future, but the rising costs of elder care mean that the average person’s assets are not adequate to cover their medical expenses, which could impact their assets in the future. This is why an Iowa Medicaid planning lawyer can help.

When you think about your golden years, you might be considering one of the Des Moines area’s assisted or independent living facilities, like Edencrest or Kennybrook Village. But failure to think about the costs of your long-term care can result in financial issues and legal problems that could impact you and your family for decades to come. For this reason, it’s important to have a Medicaid planning lawyer by your side.

At Letsch Law Firm, we have decades of experience protecting the assets of our clients in Grimes, Des Moines, and the surrounding area. We can help you create a strategy to shield your real estate and other assets from Medicaid should the need for government assistance with your healthcare ever arise. It’s crucial to consider all the possibilities and plan for any future circumstances.

What Is Medicaid Planning and How Can it Help Protect Assets in Iowa?

Medicaid planning is a multifaceted aspect of your overall estate plan that involves shielding your assets using such tools as irrevocable trusts to protect your property and assets for your heirs. Some of the strategies Medicaid planning lawyers use to protect wealth include:

An irrevocable trust can prevent Medicaid from forcefully taking your assets after your death by shielding assets in a trust that cannot be altered or revoked.
Spousal transfers, which move assets to spouses who are not subject to Medicaid restrictions.
Caregiver agreements reimburse family members for care, creating a trackable, recordable expense.
Promissory notes and loans can provide structured protection for some assets.

If you are over the age of 55 and your medical treatment is covered by Medicaid, your heirs may face seizure of your assets after your death unless some or all of these protections are put into place.

Many families under the poverty line experience hardships because of Medicaid costs, leaving their estates significantly diminished. Some individuals feel that without significant assets, estate planning is less important. However, estate planning is a vital protection individuals have in protecting the totality of assets they have for themselves and their beneficiaries. This is true for Medicaid planning as well.

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Hire a Medicaid Planning Lawyer

Many people delay estate planning and Medicaid planning because they are healthy and busy enjoying their retirement. This can be a costly mistake. Over 24% of Americans 65 and older are in fair or poor health. Ailments such as cancer, Alzheimer’s, and heart disease can strike unexpectedly, creating the need for expensive medical treatments and long-term care.

No one wants to think about the potential financial impacts of poor health, but 3 out of 5 nursing home residents pay for their care with Medicaid. Long-term care can cost thousands of dollars a day, and very few people, no matter how carefully they manage their wealth, can pay for years of care without government assistance. Starting the Medicaid process early can be advantageous in the protection it provides in the long run.

At Letsch Law Firm, we focus our practice on all matters of estate planning, including Medicaid planning, helping you to secure your assets for the future.

FAQs About Medicaid Planning Law

What Are the Income and Asset Limits for Medicaid Eligibility in Iowa?

To qualify for Medicaid without a spend-down, the monthly income for seniors 65+ cannot exceed $967, and fiduciary assets cannot exceed $2000. The income limits are higher for those in nursing homes, but the accumulated asset limits are the same. This is why it is crucial to protect your fiduciary assets well before you apply for Medicaid benefits, as asset transfers can be scrutinized if they occur during the lookback period.

How Does Iowa’s Five-Year Lookback Period Affect Medicaid Applications?

Iowa utilizes a five-year lookback period, beginning five years from the date of the Medicaid application. Any asset transfers that occur during this period are scrutinized and may be penalized by Medicaid. When you hire a Medicaid planning lawyer, they can apply tools such as strategic transfers before the lookback period to help shield your assets from penalties.

How Can an Iowa Medicaid Planning Lawyer Help You Avoid Estate Recovery?

A Medicaid planning lawyer can help you avoid estate recovery by utilizing such tools as a community spouse transfer, which provides that all assets are transferred into the spouse’s name who is not receiving Medicaid benefits. Prior planning is important with these strategies to protect your children and grandchildren from later estate recovery after your spouse dies.

Which Assets Are Exempt From Medicaid Recovery?

Your primary residence up to a certain amount of equity is exempt, so long as your spouse or certain relatives live there. One vehicle of any make or model is exempt. Personal belongings such as clothing, home goods, and furniture are exempt. There are several other items that are exempt from Medicaid recovery. A qualified Medicaid planning attorney can help you determine which of your assets need protection and which will be exempt.