Richard M. Barron
attorney at law
Member
National Academy of Elder Law Attorneys
"Common
Mistakes in Texas Medicaid Asset Protection Planning"
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Depleting assets by
waiting too long to begin asset protection planning.
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Thinking that it is too late
to begin the planning process.
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Believing that Medicare pays
for long term nursing home care.
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Failing to preserve a reserve
fund to pay for care not provided by Medicaid.
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Relying on advice from someone
who is not an expert in the Texas Medicaid program.
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Failing to get a durable power of
attorney signed before a person is incompetent.
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Neglecting the possibility that the
well spouse may die before the sick spouse.
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Skipping the fact that both spouses may
need nursing home care.
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Failing to take advantage of spousal
protection regulations.
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Transferring assets without understanding the
Texas of Agency of Aging transfer rules and penalties.
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Confusing the look back period and the
transfer disqualification period.
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Causing the look back period and the transfer
disqualification period.
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Transferring the home directly to the children
without understanding the homestead protection laws in Texas.
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Ignoring exempt transfers that do not result
in a period of disqualification.
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Failing to disclose all transfers made in the 36
months prior to the Medicaid application.
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Confusing the Internal Revenue Service $11,000
yearly gift tax exclusion with the Department of Aging rules concerning
disqualification penalties caused by the transfer of assets.
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Failing to consider the tax consequences during
the planning process.
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Thinking that assets in any type of trust will
not be counted in the available asset total.
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Lacking knowledge about how annuities can be used
to gain Medicaid qualification quickly.
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Missing the use of exempt assets in the planning
process.
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Confusing gross income with net income, the
amount actually received after deduction for such things as income taxes, health
insurance premiums, etc.
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Applying for Medicaid for a person whose gross
income is greater than Texas's income cap and who does not have a Qualified
Income Trust.
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Failing to fund the Qualified Income Trust each
month of Medicaid benefits.
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Omitting any assets or source of income in the
Medicaid application.
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Failing to keep accurate records for submission
to Texas Department of Aging.
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Neglecting to notify of any changes in assets or
income after approval.
Legal Disclaimer
This information
has been provided for informational purposes only. It
does not constitute legal advice.
The receipt of this
information does not establish an attorney-client privilege.
Proper legal
advice can only be given upon consideration of all the
relevant facts and the law.
Therefore, you should not
act upon any information contained herein without seeking
appropriate
legal counsel.
Richard M. Barron
Attorney at Law
209 E. Main Street
Whitesboro, Texas 76273
903-564-3663, 800-939-9093
Fax - 903-564-5562
email -
[email protected]
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