• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Trust Administration
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Elder Law FAQs
        • In-Home Elder Care
        • Medicaid
        • Planning for Long-Term Care
      • Estate Planning
        • Business Succession Planning
        • Estate and Gift Tax
        • Estate Planning for Blended Families
        • Estate Planning for Parents
        • FAQs for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Taxes on Inheritances in Vermont
      • Incapacity Planning
      • IRA & Retirement Planning
      • Gift, Estate, and Inheritance Taxes
      • Legacy Wealth Planning
      • Philanthropy and Estate Planning
      • Pet Planning
      • Revocable Living Trust
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » Medicaid Planning: Update Figures for 2021

Medicaid Planning: Update Figures for 2021

March 3, 2021 by Ellen LaPlante

Medicaid planningAs elder law attorneys, we advise clients that are concerned about potential long-term care costs. The majority of elders will need help with their activities of daily living, and a significant percentage of them will require paid care.

You can expect to pay over $125,000 for a year in a nursing home in the Burlington, Vermont area, and you are look at almost $70,000 for a professional home-health aide.

Almost all seniors qualify for Medicare coverage, and it is a solid source of health insurance all things considered. However, Medicare does not pay for long-term care, so you have to look elsewhere for assistance.

Medicaid has become the de facto source of long-term care insurance in this country because it will pay for long-term care. In fact, about 65 percent of seniors in nursing homes are Medicaid beneficiaries.

Medicaid Asset and Income Limits

There is a Medicaid asset limit of $2000, but some things that you probably own are not countable for Medicaid purposes. Your motor vehicle is not counted, and you can retain ownership of your wedding ring, your engagement ring, and your heirloom jewelry.

Furniture and other household items are exempt, along with personal belongings. An applicant can have unlimited term life insurance and $1500 worth of whole life insurance. The same amount can be saved for final expenses, and prepaid burial plots are exempt.

The most significant asset that is not counted is your home, but there is an equity limit of $603,000 in Vermont in 2021.

In half of the states, you can qualify if you contribute your income toward the cost of the care that is being received minus a small personal needs allowance, and Vermont is in this group.

However, you could convey assets into a Qualified Income Trust (sometimes called a Miller Trust) to meet the eligibility criteria.

Allowances for a Healthy Spouse

If you are married and your spouse is entering a nursing home while you can still living independently, you would be entitled to a Community Spouse Resource Allowance. This is half of the assets that count for Medicaid purposes, but there is a limit.

In Vermont in 2021, the limit is $130,380. In some states, there is a minimum that a healthy spouse can keep even if it is more than half of the total, but we are not in that group.

A healthy spouse can also qualify for a Monthly Maintenance Needs Allowance. This gives the person in question the ability to receive income that is earmarked for the spouse that is a nursing home resident. In 2021, the maximum allowance is $3259.50, and the minimum is $2155.

Countable Assets

There is a solution when it comes to the assets that are countable, but you have to act in advance. You could convey resources into an irrevocable Medicaid trust, and you would not be able to access the principal, but you could receive distributions of the trust’s earnings.

Divestitures must be completed at least five years before you apply for Medicaid because there is a look-back period. You would be deemed ineligible if you violate this rule, so proactive planning is key.

Attend a Free Webinar!

You are here because you are looking for information about estate planning and elder care topics, and you are in the right place. We are conducting a number of webinars over the coming weeks, and you can learn a lot in a short period of time if you join us for one of these sessions.

There is no charge, but we ask that you register in advance so we can reserve your spot. You can see the dates and obtain registration information if you visit our webinar page.

Need Help Now?

If you already know that it is time for you to work with an attorney to put a plan in place, we are here to help. You can schedule a consultation appointment if you call us at 802-879-7133, and you can fill out our contact form if you would prefer to send us a message.

 

 

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • How to Apply for Senior Medicaid in Vermont - December 11, 2022
  • Planning for the “Silver Tsunami” - November 1, 2022
  • Discharge of Indebtedness Income and Student Loan Forgiveness - October 27, 2022

Filed Under: Uncategorized Tagged With: Elder Law, nursing home asset protection, Medicare planning

Other Articles You May Find Useful

Essex Junction elder law attorneys
What You Need to Know about Elder Abuse
Essex Junction Medicaid planning attorneys
How to Apply for Senior Medicaid in Vermont
Planning for the “Silver Tsunami”
Discharge of Indebtedness Income and Student Loan Forgiveness
More than Just Salad Dressing: The Ongoing Saga of Newman’s Own Foundation
Essex Junction Medicaid planning attorneys
Does My 401(k) Account Count for Medicaid Eligibility?

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

Sign up to Unsworth LaPlante's estate planning blog to receive all the latest news and updates.

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.