Financial Hardship in Michigan is a Reason to Plan Now
A common question asked by many considering creating an estate plan is: What is the benefit of acting today? The short answer is that the laws change and planning opportunities, like many other things, will also change when changes take place in the law. If you plan now, while the laws are still semi-favorable to asset protection, the opportunity to protect your assets is preserved by the current law. However, if you wait and the laws change, your planning opportunities will be affected by the new changes. So, what changes in the law are we as Elder Law attorneys concerned with?
Currently in Michigan, the Medicaid rules are strict, but they are limited to a five-year look back. Michigan also adopted the Estate Recovery Act into law in 2007. These changes have already affected planning opportunities, but there could be more changes to come. Other states have already moved to or are in the process of moving to seven-year and ten-year look back periods for Medicaid. And there is a growing concern that the State of Michigan may pass legislation implementing additional measures aimed at estate recovery in the form of Medicaid liens.
There is no doubt that Michigan has been hit hard during the recent economic downturn. Two major sources of the state’s revenue — property and income taxes — have created budget shortfalls that can only encourage lawmakers to make more stringent rules. The loss of jobs and property foreclosures have had more of an impact on Michigan — its residents and its state government – than many would like to admit. Being aware of these issues and the fact that our state needs to raise more revenue, our team of Elder Law professionals is urging citizens to plan today, before Michigan lawmakers set more stringent rules and planning opportunities become more limited.
Michigan Medicaid Attorneys at The Elder Law Firm PC provide assistance in protecting your assets and protecting your family through Medicaid planning. Contact us by calling 616.840.3754 or completing our free online Medicaid planning form here.