Many clients know their financial and other long-term goals, but are confused about the tools they need to achieve them. They often ask questions such as “Do I need an estate plan to prepare for nursing home costs?” “Will Medicaid planning help protect my assets?” “I have a lot of assets. Can I still qualify for Medicaid?” Consider these points when weighing the benefits of estate planning vs. Medicaid planning.
What is the Difference Between Estate Planning vs. Medicaid Planning?
Understanding the difference between Medicaid planning and estate planning can be difficult because they often overlap. For example, someone applying for Medicaid may also need an estate planning tool — such as a power of attorney — to make sure their affairs are in order. However, there is one clear distinction.
Medicaid planning involves the advanced protection of assets in order to retain eligibility for long-term government assistance. Estate planning, on the other hand, involves the conserving and passing down of assets to designated beneficiaries.
Estate Planning Basics
- Estate planning uses various tools to designate beneficiaries and guardians for young children.
- Estate planning is for preserving assets.
- Estate planning is useful for adults of all ages.
- Someone with significant assets may benefit more from estate planning.
Medicaid Planning Basics
- Medicaid planning helps you protect assets for your family when entering into a nursing home or other long-term care facility.
- Medicaid planning is for reducing them.
- Medicaid planning is usually reserved for older adults or the disabled.
We help our clients consider all of these points and others when discussing their long-term goals. If necessary, we will also recommend other viable options, including reverse mortgages, long-term care insurance and more.
Choosing Between Estate Planning and Medicaid Planning
Are you considering setting up an estate plan to protect assets for your children or grandchildren? Are you interested in Medicaid planning? Do you know the difference?
To discuss which option is best for you, contact a lawyer at Solomon, Steiner & Peck, Ltd. From three locations, including Mayfield Heights, Independence, and Westlake, we advise clients throughout northeastern Ohio. We will listen to your needs and goals, answer your questions, and help determine what type of planning works best for you and your family.