Medicaid & Retirement Accounts
Will Long-Term Care Deplete Your Retirement Accounts?
As medical care advances and life expectancies increase, the number of people requiring some form of assisted living, nursing home care, home care, or other long-term care assistance is increasing. The expense of such care can quickly deplete your life savings if proper, timely planning is not implemented. At the Law Office of Neil H. Reig, clients learn the options for financing long-term care needs, the basics of Medicaid eligibility and the strategies they can leverage to protect assets, including assets currently held in retirement accounts, for future generations.
From his office in Westchester County, New York, Medicaid and retirement accounts attorney Neil H. Reig serves clients in Mount Kisco, White Plains and throughout Westchester County and surrounding northern metropolitan communities. Contact his estate planning law firm today at 914-242-4800 to arrange a consultation.
Mount Kisco Attorney — Protect Retirement Assets
Medicaid eligibility. In determining whether an individual qualifies for New York Medicaid benefits, income and resources of both the applicant and his or her spouse are scrutinized. Resources may include assets held in either party's name, as well as assets to which either party is entitled, such as retirement benefits and annuities.
Retirement accounts. Many retirement planning strategies include using vehicles such as traditional IRAs, Roth IRAs, pensions, 401(k) plans and other qualified retirement plans to save for retirement. Unfortunately, unless placed into "pay-out status", the assets held in these retirement accounts will be considered available resources when determining Medicaid eligibility, regardless of whether they are held in the applicant's name or his or her spouse's.
Retirement and Medicaid planning. In many contexts, retirement planning and Medicaid planning have contradictory objectives. Should the future need arise for long-term care, many families are left with the decision to utilize other financial resources to pay for the long-term care — such as savings or long-term care insurance coverage (if available) — or utilizing proactive planning efforts tailored to manage counted applicant and spouse resources, and facilitate eligibility for Medicaid benefits when the need arises. Techniques may include spending down certain retirement assets on home repairs or improvements, transferring assets (gifting) outside of the five-year look-back period, placing a retirement account into "payout" status in order to preserve the principal and other strategies.
With more than 25 years of legal experience, and more than 15 years of serving the Westchester, New York, area, attorney Neil H. Reig has the comprehensive experience, knowledge and skill necessary to evaluate a client's position and recommend the most effective strategy to achieve his or her objective.
Contact a New York Medicaid Planning Lawyer
If you have questions about effective retirement planning or want to ensure your retirement and Medicaid planning efforts do not collide, schedule a consultation at the Law Office of Neil H. Reig. Contact Westchester County, New York, lawyer Neil H. Reig to learn about your options. Call his retirement and Medicaid planning law firm at 914-242-4800.