Estate planning in Ohio involves more than distributing your property. You also need to consider how to pay for future care, especially long-term care. Medicaid is a major factor, and understanding its impact can help you make smarter decisions.
Understanding Medicaid and long-term care
Long-term care is costly, and Medicaid helps cover those expenses. However, eligibility depends on strict income and asset limits. You might need to spend down assets or shift ownership to qualify. Without a solid plan, the high cost of care could deplete your estate.
The Medicaid estate recovery program
When someone who used Medicaid dies, Ohio’s Medicaid Estate Recovery Program may seek reimbursement from the person’s estate. This includes property still in their name. Assets like a home could be sold to repay the state. Advance planning can reduce this risk and preserve property for your family.
Using trusts to protect assets
Trusts, particularly irrevocable ones, may protect your assets from Medicaid recovery if you establish them early enough. Timing is essential. Assets transferred to a trust within five years of applying for Medicaid may still be counted. Planning ahead gives you a better chance to properly shield your property.
Why timing and strategy matter
Your current decisions influence both your Medicaid eligibility and your estate’s future. Strategic planning allows you to access care while preserving assets for your heirs. Learning how Medicaid rules work ensures you make informed decisions that support your long-term goals.
