The rising cost of medical care in Florida and throughout the United States is a source of pain for many families. If you are considering taking action to reduce costs, there could be other options available to you. However, these would probably involve taking certain steps to preserve family assets.
Before reading, please understand that this is one of the more complicated subjects in elder law and estate planning. Although it is true for any situation, it is important to seek specific legal advice in these matters.
One of the main concerns when planning for your parents’ medical care will probably be preventing the entirety of their holdings to go towards their bills. To this end, you may seek support from government programs. However, these programs may have income or other financial restrictions.
These qualifying factors change frequently. Tax law may also affect your parents ability to qualify for government programs. However, the main concept remains the same: finding a strategic balance between asset protection and estate planning.
As mentioned in the CPA Journal, there are various methods of asset allocation and asset location that achieve different financial effects. For example, it could be possible to structure trusts in order to balance earnings and enhance tax returns.
Reducing personal income and holdings to qualify for medical assistance is an issue for financial advisors and other accounting and finance professionals. However, it also might relate to estate law in that certain ownership structures may have an effect on the way probate courts handle assets.
Above all, you deserve a solution that works for your unique case. As mentioned above, please seek specific legal advice for any material situation. This is only background information meant to address the general issue.