Medicaid Planning is the shifting of assets and income to qualify for Medicaid in the event home health services or institutional care in a nursing facility is needed.
While Medicaid can cover the cost of these services, the person receiving Medicaid must essentially have no countable assets and have limited income. Today's retiring middle class often have assets such as retirement accounts, savings, pensions, life insurance and very valuable homes which would normally disqualify them from receiving Medicaid benefits.
Even if someone currently has countable assets, it is still possible to receive Medicaid and ensure your spouse or loved ones can still be taken care of. By using Medicaid compliant trusts and other methods of asset transfers during the Medicaid planning process, our clients can qualify for Medicaid benefits while retaining some assets and income.
The Problem: Long Term Care Is Expensive.
When we say Long Term Care is expensive, we mean it is really expensive. As of 2023 the daily average cost for nursing home care in New York and New Jersey is nearly $500, which is around $150,000 per year.
A competent Medicaid planning attorney can guide a client to qualifying for Medicaid benefits. The techniques and strategies needed for Medicaid planning are complex and should be left to professionals familiar in this practice. The cost of a Medicaid Planning attorney is well worth the price and often paid back within 1 to 2 months of Medicaid qualification.
The Medicaid programs are constantly shifting. In past decades the qualifications were more relaxed, but now with the implementation of longer asset transfer lookback periods, strict income limits, and rising costs, strategies used in Medicaid planning must also shift. In fact, New York is going to be one of the few states where a look back period will be implemented for in-home care.
We predict his trend of tightening requirements will continue as the government and Country as a whole cut spending and as more and more Baby Boomers require long term care and services.
In addition to proper Medicaid planning, we recommend our clients to have a proper estate plan in place in case of incapacity or death.
A consultation with our Medicaid planning attorneys can answer many of your questions and ease your mind about qualifying for Medicaid.