Medicaid Planning

Navigating the Complexities of Medicaid Planning

Medicaid planning, a crucial part of elder law, involves understanding intricate federal and state laws to preserve assets and secure eligibility for benefits. Mistakes in self-planning can be costly, often leading to seeking legal help to rectify these errors.

Understanding Asset Transfer Rules

Transferring assets within five years before applying for Medicaid can lead to penalties and periods of ineligibility, particularly when transfers are seen as gifts. However, some transfers are exempt, including those to disabled adult children, to a ‘caregiver child’, or to siblings with ownership interest in the family home.

Medicaid Eligibility Requirements

To qualify for Medicaid, the Applicant must meet certain state residency, citizenship, and financial criteria. This includes limits on monthly income (with workarounds like qualified income trusts) and asset value, which vary based on marital and partnership status.

Medicaid Planning: A Proactive Approach

Effective Medicaid planning starts with the mantra: THINK AHEAD. PLAN AHEAD. ACT NOW! Much of Medicaid is time sensitive.  Failure to meet deadlines or to take action in the proper sequence can result in costly unintended consequences. Delayed planning can disrupt asset protection strategies. Our attorneys at Rudolph Law Offices bring decades of experience in Medicaid planning, ensuring clarity and order in this complex process.

Beyond Internet Research

Understanding Medicaid requires more than just online research. The internet is full of information, but much of what you can find may be out of date or not applicable in your state. Our team is dedicated to comprehensively understanding Medicaid laws and patiently working with seniors and their families to ensure complete understanding and effective planning.

Planning for Legacy and Asset Transfer

Early planning opens up more options for asset transfer while retaining Medicaid eligibility. We explore various strategies, including trusts and asset control, tailored to individual circumstances and preferences.

Family-Centric Approach

We respect the right of our clients to be entitled to confidentiality.  However, we encourage family involvement in planning discussions to ensure transparency and understanding, particularly when the client may not fully understand the complexities of the Medicaid Law. This collaborative approach helps in making informed decisions about asset transfers and future care.

Qualification For Medicaid

To be eligible for Medicaid, individuals must also meet certain financial and non financial eligibility criteria:

• Medicaid beneficiaries must be residents of the state in which they are receiving Medicaid. There is no minimum residency requirement.
• They must be either citizens of the United States or qualified legal residents.
• The Applicant must be certified by the Medicaid Nurse to require long-term skilled nursing home care.
• Income from Social Security and pensions must not be more than $2,829.74 per month. There is a procedure for working around the income cap. It requires  the establishment of a qualified income trust (QIT). There is a limit on the value of assets. The limit depends on whether the applicant is married or in a domestic partnership.
• If the applicant is unmarried and not in a domestic partnership, his or her assets, other than exempt assets, must not be more than $2,000.

If the applicant is married or in a domestic partnership, Medicaid also limits the amount of assets the “community spouse” (the one who remains in the community) is permitted to retain:

• The community spouse can protect 50% of combined countable resources, but at least $29,724 and not more than $148,620. This is called the Community Spouse Resource Allowance (“CSRA”). It increases each year by the same percentage as the increase in Social Security benefits.
• The marital home is exempt and is not counted if it is transferred to the community spouse.
• Household furniture and furnishings are exempt and not counted.
• One car is exempt and not counted.

Exemptions and Legal Advice

Certain asset transfers are exempt from Medicaid penalties, like transfers to disabled children or caregiver children. Understanding these exemptions is key to effective planning.

Schedule Your Consultation

Begin your Medicaid planning with a consultation at Rudolph Law Offices. Contact us at (973) 838-3636 ext. 4 or online. Our Riverdale office is handicap-accessible, with convenient parking, and is located near N.J. Route 23 and Route I-287.

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