Long-term care is one of the biggest financial risks many families will ever face.
In Oklahoma, nursing home care can easily cost more than $6,000 per month. Assisted living may cost less, but it is still a significant expense. One of the biggest misconceptions I hear is that Medicare will pay for long-term nursing home care. Generally, it doesn't. Medicare primarily covers short-term rehabilitation following a hospital stay, not ongoing custodial care.
When families realize this, they often start looking at Medicaid and hear well-meaning advice such as, "Just give your house to your kids."
That advice can create serious problems.
Oklahoma Medicaid applies a five-year lookback period. When someone applies for long-term care Medicaid, the agency reviews financial transfers made during the previous five years. Gifts made during that period can trigger a penalty that delays eligibility for benefits.
The result can be devastating. A person may already be living in a nursing home, have exhausted their savings, and still be required to privately pay for care because of a transfer made years earlier.
Many people also don't realize:
- A home is often an exempt asset while you or a spouse continues living there.
- Oklahoma provides protections that allow a healthy spouse to retain certain assets and income.
- Some transfers, such as transfers to a spouse or certain disabled children, may qualify for exceptions.
- Planning years before a crisis provides significantly more options than planning after one has already begun.
Every family's circumstances are different. Before transferring property or giving away assets, make sure you're receiving advice that reflects current Oklahoma law—not neighborhood folklore.
This article is for educational purposes only and does not create an attorney-client relationship.