Bakersfield, California, United States - July 20, 2022 —
California elder law attorney Robert H. Brumfield has spoken out to redress misinformation circulating among clients about the impact of their assets when they seek nursing home care.
For more information please visit https://www.brumfieldlawgroup.com
The Founder of the Law Offices of Robert H. Brumfield, P.C., in Bakersfield, CA., zeroed in on four persistent myths.
What happens to a person's assets when admitted to a nursing home was the first to be addressed. "There is a lot of misinformation around this topic and can often result in hard-earned assets being poorly protected or unprotected altogether," he said.
One widespread misconception is that an individual in nursing home care can give away $16,000 per person a year without penalties. Brumfield said: "The $16,000 limit applies to federal gift tax and has nothing to do with applying to and eligibility for Medicaid.’’
"Medicaid gifting rules differ: You will be penalized and not qualify for Medicaid benefits for some time if any gifts you make are considered divestments."
The second myth centered on 'Medicaid-Friendly Annuity'. He said: "Many older adults mistakenly assume buying a Medicaid-friendly annuity will act as an asset protection plan. A Medicaid pre-planning annuity isn't what it used to be. Changes in Medicaid laws at both federal and state-level mean annuities may not be as helpful in planning and qualifying for Medicaid."
Brumfield added: "The downside to many supposed Medicaid-friendly annuities is they are regular deferred annuities. Many annuities have limited options when qualifying for Medicaid and can narrow the scope of protected assets if you are in a nursing home."
Another misconception is the state will seize assets when someone enters a nursing home. He asserted: "You don't have to hand over anything to the state. If you're not married, the amount to spend down to is $2,000 or less in cash and other countable assets."
In other words, Medicaid won't dispense any money until you 'spend down' your countable or available assets.
Lastly, Brumfield said it's never too late to develop an asset protection plan even after a loved one is in nursing care. "It's never too late to protect your assets. You can still qualify to receive Medicaid benefits even if you've used private funds to pay for nursing home expenses for years."
He concluded: "The one overriding recommendation in addressing all these questions is to consult an experienced elder law attorney before doing anything you may later regret."
Source: http://RecommendedExperts.biz
Contact Info:
Name: Robert H Brumfield
Email: Send Email
Organization: Law Offices of Robert H. Brumfield, P.C.
Address: 1810 Westwind Drive, Suite 100, Bakersfield, CA 93301
Phone: (661) 416-3735
Website: https://www.brumfieldlawgroup.com
Release ID: 89078684
If you detect any issues, problems, or errors in this press release content, kindly contact error@releasecontact.com to notify us. We will respond and rectify the situation in the next 8 hours.
