As you grow older, you will need more support and medical care at the same time that your income decreases due to retirement. Regardless of how much you have previously saved, there are certain expenses that could exceed your retirement savings or not fall under your Medicare coverage.
For example, time in a nursing home to recover from an illness or a six-month stay at a rehabilitation facility after a hip transplant are forms of treatment not covered by Medicare. You may need to qualify for Medicaid in an unexpected emergency as you get older.
Your income and assets determine if you can get benefits. Although the state of Michigan won’t use your homeownership against you when you apply, the state may eventually make a claim against your home.
Michigan Medicaid has estate recovery rights
Given that Medicaid is a needs-based benefit, the state expects people to have used all of their property for their cost of living or medical expenses before they apply. Any assets left in someone’s estate are subject to Medicaid recovery claims which may require that the executor liquidate or sell off those assets to repay the Medicaid benefits the deceased individual received.
Not only can the recovery program come after bank accounts, but it can make a claim against someone’s primary residence after they die. While you may have intended for your loved ones to inherit your home, if you don’t plan ahead before applying for Medicaid, your house may benefit the state instead of your family members after you die.
Identifying personal risks that you may face as you grow older can help you plan to protect yourself and the people that you love.