Asset Protection

Review the difference the Medicaid Planning and Asset Protection services provided by The Smith Law Firm can make in the following 3 scenarios:

Scenario #1: Married Couple**

• Married couple, husband enters nursing home;
• Income: $2,000 per month joint income;
• Assets: $175,000 house; $100,000 in investments (making 8%); $120,000 in savings (making 3%) = $395,000 total assets;

Without proper planning, this couple would likely never think they could ever qualify for Medicaid to pay the nursing home bills and therefore spend down all of their cash/investment assets to $2,000 before applying for Medicaid......and then potentially lose their home or a great portion of its value through the Estate Recovery program.

OR.....

By planning with The Smith Law Firm (in this scenario): 1) husband would be eligible for Medicaid to pay the nursing home immediately; 2) all of their income would be sheltered for the wife (well spouse); 3) 100% of their assets would be sheltered (in this scenario) despite the fact that he has already gone into a nursing home!! Yes, 100%.

Scenario #2: Single/Widowed Individual **

• Widow ("Mom"), enters nursing home;
  
• Income: $1,100 per month income;
  
• Assets: $85,000 house; $100,000 in investments = $185,000 total assets;

Without proper planning, Mom & her family would likely never think that she could ever qualify for Medicaid to pay the nursing home bills and therefore spend down all of her cash/investment assets to $2,000 before applying for Medicaid......and then potentially lose Mom's home or a great portion of its value through the Estate Recovery program.

OR.....

By planning with The Smith Law Firm (in this scenario): 1) Mom would be eligible for Medicaid to pay the nursing home in 20 months, during which time she would pay privately; 2) 56% of Mom's assets would be protected sheltered, or $104,680 of her $185,000 total assets - again, even if she is already in the nursing home.

Scenario #3: Married Couple with Higher Net Worth**

• Married couple, husband enters nursing home;
  
• Income: $4,000 per month joint income;
  
• Assets: $250,000 house; $75,000 in cash/CDs; $250,000 in brokerage accounts = $575,000 total assets;
  

Without proper planning, this couple would likely never think they could ever qualify for Medicaid to pay the nursing home bills and therefore spend down all of their cash/investment assets to $2,000 before applying for Medicaid......and then lose their home or a great portion of its value through the Estate Recovery program.

OR.....

By planning with The Smith Law Firm (in this scenario): 1) husband would be eligible for Medicaid to pay the nursing home in 21 months; 2) the first $2500 of their income would be saved for Mom (well spouse); 3) 86.5% of their assets would be sheltered (in this scenario) despite the fact that he has already gone into a nursing home!! That equates to $497,000 of their initial $575,000. Yes, 86.5%.

** These scenarios are for demonstration purposes only. The results are based on the basic information provided and general rules of law. It does not take into account specific circumstances, exceptions, and other variables, and may take into account certain facts that do not apply to all applicants. The result is an estimate based on a variety of assumptions and does not in any way constitute a guarantee of a specific outcome.