When a parent or spouse needs nursing home care, most families are already stressed and overwhelmed. On top of that, Indiana’s Medicaid rules are confusing, and a lot of what people “think” they know turns out to be wrong. Over the years, I’ve seen the same mistakes come up again and again. Here are five of the most common ones:
1. Thinking You Have to Lose Everything to Get Medicaid
Many people believe Medicaid is only for those who are completely broke. That’s simply not true. Indiana Medicaid allows certain assets to be protected, and there are legal planning strategies that can preserve much more than people expect. Medicaid planning isn’t about hiding money; it’s about knowing the rules and using them correctly.
2. Giving Away Money Too Soon (or Too Late)
It’s very common for families to give money to children or grandchildren, thinking it will help with Medicaid later. The problem is Indiana has a five-year look-back period. Gifts made during that time can cause a penalty period where Medicaid won’t pay for nursing home care. Despite the look-back period, there are legal ways to protect assets. An experienced elder law attorney who specializes in Medicaid planning can discuss those planning options with you.
3. Assuming It’s “Too Late” to Plan
Some families believe that if a loved one is already in a nursing home, there’s nothing that can be done. While planning earlier is often better, crisis Medicaid planning is still possible after admission to a nursing home. Waiting too long, though, can reduce options and increase out-of-pocket costs.
4. Forgetting About the Healthy Spouse
One of the hardest situations I see is when poor planning leaves the healthy spouse struggling financially. Indiana Medicaid has rules meant to protect the spouse who stays at home, but those rules aren’t simple. Without proper planning, the community spouse may end up with far less income or assets than the law actually allows.
5. Trying to Do It All Alone
Medicaid rules are complicated and unforgiving. A small mistake can mean a denial or months of unpaid nursing home bills. Advice from friends, the internet, or even well-meaning facility staff is often not accurate. Medicaid planning isn’t something most families should tackle on their own. Avoiding these common mistakes can save money, reduce stress, and help protect what you’ve worked a lifetime to build. Contact my office for a free consultation at 812–423-1500 to see how we can help.
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