Three Key Considerations for Long Term Care Planning in Florida

Long term care planning is an important part of overall estate planning. You probably already know that long term care, especially nursing home care, can be incredibly expensive. You may be less well-versed in how to effectively plan for it. At Fisher & Wilsey, P.A., we are proud to be leaders in proactive long term care planning. Here, our St. Petersburg long term care planning attorney highlights three of the most important considerations in Florida.

Consideration #1: Understanding Medicaid Eligibility and Asset Limits

Medicare does not cover long term care. That is one of the most important things that people and families in Pinellas County need to understand. In Florida, Medicaid is the primary public benefit that helps pay for long term care. The difference matters because the eligibility rules for Medicaid are strict. Medicaid has income and asset limits that must be met before benefits begin. For a single applicant, countable assets are capped at a relatively low amount, while married couples must navigate complex spousal protection rules. Certain assets may be exempt, such as a primary residence within equity limits. Planning ahead allows families to structure finances lawfully to best protect their assets. There are things you can do to limit your vulnerability to long term care costs.

Consideration #2: The Five-Year Look-Back Rule and Timing Risks

Florida Medicaid applies a five-year look-back period to asset transfers. If you put assets within a proper trust, they can be protected from Medicaid. However, that is only true if you set up a trust in a timely manner. The five year look back rule allows the state to review financial transactions made within the sixty months before a Medicaid application. Gifts or transfers for less than fair market value can trigger a penalty period of ineligibility. Many families make well-meaning transfers to children without realizing the legal consequences. Once care is needed, reversing those decisions is often impossible. Long term care planning focuses on timing and documentation. In other words, trusts are only fully effective for long term care planning if they are set up at least five years in advance. 

Consideration #3: Planning for Incapacity and Decision-Making Authority

Long term care planning is not only about paying for care. The financial aspects are extremely important, but there are other major considerations as well. Indeed, long term care planning is also about who has legal authority to act when a person cannot. Florida law requires proper documents to manage finances, make medical decisions, and arrange care. Without them, loved ones may need court intervention through guardianship. That process is public, expensive, and restrictive. Advance planning typically includes a durable power of attorney, health care surrogate designation, and living will. A top St. Petersburg long term care planning attorney can help. 

Call Our St. Petersburg Estate Planning Lawyer for Long Term Care Planning Today

At Fisher & Wilsey, P.A., our St. Petersburg estate planning attorney has the skills and experience to handle the full range of long term care planning matters. If you have any questions about long term care planning, please do not hesitate to contact us today for a completely confidential case review. With an office in St. Petersburg, we provide long term care planning services across the region.