An alternative approach to becoming eligible for Medicaid, when you possess excessive assets, involves utilizing personal services contracts. Personal services contracts refer to agreements typically made with relatives, caregivers, friends, or neighbors. Under these agreements, they commit to providing services until your passing, and in return, you compensate them at the prescribed hourly rate covered by Medicare. Although there are additional intricate aspects to consider, generally speaking, if you are an 89-year-old woman, your average life expectancy is approximately three and a half years. In this scenario, you can offer a lump sum payment to someone who will render care for the same duration, deducting that lump sum from your assets. For instance, if you have $102,000, you can allocate $100,000 towards the personal care contract. By doing so, you reduce your assets to the extent where you become eligible for Medicaid. Additionally, you have effectively remunerated your usually designated daughter or son for all the services they will provide until your demise, allowing us to expedite the qualification process for you.
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