Deciding to get help with Nursing Home bills is not as simple as just filling out an application for Medicaid benefits. Besides Medicaid Estate Recovery, which has nothing to do with eligibility, there is also the often hidden problem of taxes on long term capital gains.
It is important to remember that assets acquired during life’s journey all have a tax basis. In the case of real estate, and investments, disposing of those assets in order to raise cash for long term care, or for investing in “Medicaid friendly” assets that will not prevent eligibility, can have some pretty severe tax consequences.
Knowing when it is best to await death, and take advantage of the “step up” in basis afforded to heirs, or to liquidate a Medicaid offensive asset in favor of a “non-countable” asset, is one the many functions that the helpful folks in the bookkeeping department at a Nursing Home are simply not allowed to help you with.
See an attorney who practices elder law is the best way to make sure that a comprehensive solution to assure care without unnecessary spend down can be achieved.
This article is written by an attorney at Attorney Donald Wyatt PC. Always consult an attorney before making any legal decisions. To make an appointment today, please click here to contact us.