Asset Protection Myths

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Debunking Two Critical Asset Protection Myths

When facing a long-term care crisis, families are often overwhelmed and vulnerable to misinformation. Acting on these common myths can lead to drastic and costly mistakes. Understanding the truth behind these misconceptions is the first step toward making informed choices that protect your family and your assets.

Myth #1: “I have to be poor to get Medicaid for nursing home care.”

This is one of the most persistent and damaging myths. The truth is that the Medicaid program for nursing facility care is specifically designed to provide assistance for middle-class seniors. While the rules are indeed complex, they are not insurmountable. With proactive, professional planning, it is often possible to protect a significant portion of your life savings while still qualifying for benefits. It is not about becoming destitute; it is about legally and ethically restructuring your assets to comply with the rules. This type of strategic planning for Medicaid eligibility is a cornerstone of modern elder law.

Myth #2: “If I’m poor, I’ll automatically qualify for all government help.”

This is the dangerous flip side of the first myth. Many families believe that if they simply give away all their assets, they will automatically be eligible for assistance. This is not true. Many crucial programs have strict income tests in addition to asset tests.

For example, North Carolina’s Special Assistance program for assisted living has a firm income cap. Many seniors’ Social Security income alone is enough to push them over this limit, making them ineligible for help, even if they have no assets to their name. This is a cruel reality for many families who fall through the cracks of the system.

The Solution: Don’t Go It Alone

Navigating the rules for long-term care benefits is not a do-it-yourself project. The complexities of the system require professional guidance to avoid costly errors. Whether you are in a crisis now or planning for the future, an experienced elder law attorney can help you understand all the options available to you as part of a plan to protect your assets.

Call our office at (919) 256-7000 to schedule a consultation.