There are many elder law myths that people believe which can end up costing them a lot of money. One common myth is that you can just give away money and property in order to be able to qualify for Medicaid. Unfortunately, if you fall for this myth, you could cause yourself to become temporarily disqualified from getting Medicaid benefits by transferring assets for less than fair market value or by making a gift of assets. Medicaid looks back five years from the time you want to be covered to see if you made asset transfers. If you did, you can be disqualified from getting Medicaid benefits for a period of time based on the value of assets you gave away or transferred for less than fair market value. You need to make a Medicaid plan that won’t result in your disqualification from Medicaid coverage if you hope to protect your assets while getting a nursing home paid for.
Other common myths include the idea that you should wait until you are old to create an estate plan or the idea that once you have created an estate plan, you are done with the process and no longer need to worry at all about making further plans for end-of-life issues or for your legacy. You need to make a plan when you are young, keep your plans updated, and work with an elder law attorney to ensure that you don’t make mistakes or fall for misinformation that hurts your chances to be prepared for the future.