Everyone Should Have a LadyBird--Deed That Is
With getting old comes a new realization--the realization that we are going to need additional healthcare to keep going. This may even mean one day being placed in a nursing home or having healthcare aides assist us at home. Further, someone will have to pay for that care, and increasingly, it is likely going to be the state, and the state = Medicaid.
Statistically, between 50 and 65 percent of all people who reach age 65 will go into a nursing facility in their lifetime. Most of these people will receive their care through Medicaid--whether they like it or not, it's just the reality of the world we live in.
The real danger, though, is not getting services through Medicaid, but rather, what Medicaid can and WILL do after that person dies. The Medicaid program has what is called MERP or (Medicaid Estate Recovery Program). This program is designed to recoup the costs Medicaid spends on behalf of a patient by placing a claim against the deceased person's probate estate. Through MERP, Medicaid can take and sell the patient's home after he or she passes away.
One way to protect yourself from MERP is by transferring your home prior to death via a ladybird deed. This is a highly specialized document that allows you to still qualify for Medicaid benefits, continue living in your home, keep your tax benefits, and control who the home eventually transfers to, all the while, shielding your home from Medicaid recovery.
Many people do no realize that the new Obamacare law is essentially an expansion of Medicaid for the fully-subsidized recipients. Even these people will likely own a home and pay it off over their lifetime. If and when they go to their doctor and receive medications, surgeries or any other type of medical care through the Obamacare program, Medicaid may be able to lay a claim against their estate as well--even if they never step foot inside a nursing home.
This Obamacare Medicaid expansion just shows how EVERYONE should have their home in a Ladybird deed in order to protect their assets for future generations. To not do so is to leave your life's work subject to being confiscated by the state.