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Proactive planning means planning ahead of time for a potential nursing home stay. In a proactive planning scenario, there are several Medicaid planning strategies available. Many of them overlap with crisis planning strategies, but when people are able to plan proactively, there is at least a chance that there will be no penalty period imposed by Medicaid during which the applicant has to private pay. If planning occurs 60 months or more before long term care becomes necessary, then Medicaid will not penalize the transfer(s) of assets, and the Medicaid applicant will be immediately eligible for Medicaid.
Proactive planning strategies include things like creating an funding an irrevocable long term care asset protection trust, gifting outright, transferring assets to a revocable trust, transferring the home while preserving a life estate, purchasing a prepaid funeral services contract, creating a burial services savings account, paying off a mortgage or other debt, taking out a reverse mortgage, and making exempt renovations to the home. While there are many planning strategies available, not all of them will make sense in your particular situation. The attorneys at Farah Roberts Ltd. can help guide you and your family through the planning process and help you make decisions about the most effective strategies for your situation.