Medicaid Planning

41% of American end up using medicaid to help pay for their long-term care. Many people feel that with proper "Medicaid Planning" they can use federal assistance to help cover their long-term care needs. Here are some things to consider: giving away money may be subject to gift taxes if above allowable limits and this can be far more costly in the long-run than long-term care insurance. The senior will loose control of their assets by giving them away and may need to end up asking family to give them assets back as needed. As of the end of 2008, a spouse may currently only keep one home, a car, a small amount for final expenses, $104,000 in financial assets, and $1,711 a month in income total. Any annuity values and income may also be kept in addition, but after the spouse dies the feds keep enough money to reimburse themselves for their pay-outs. This can deplete inheritances greatly. Medicaid protects the poor, it is not designed to help the middle and upper class.