Medicaid planning is the process of structuring your assets and income in a way that allows you to qualify for Medicaid coverage for long-term care expenses. Medicaid is a needs-based program, which means that in order to qualify, you must have limited income and assets. If you have significant assets and income, you may need to “spend down” your resources in order to qualify for Medicaid. This is where Medicaid planning comes in.

One way to qualify for Medicaid is to spend down your assets on qualified long-term care expenses, such as nursing home care or in-home care. This is often referred to as “qualifying spend down.” By doing this, you can reduce your assets to the level required to qualify for Medicaid coverage.

Another way to qualify for Medicaid is through the use of trusts. There are several types of trusts that can be used for Medicaid planning, such as a Qualified Income Trust (also known as a Miller Trust) or a Special Needs Trust. These trusts allow you to place assets into the trust and still qualify for Medicaid, while protecting the assets from being used to pay for your care.

Medicaid planning can play a critical role in your overall estate plan, especially if you are concerned about the high cost of long-term care. By taking steps to preserve your assets and qualify for Medicaid coverage, you can ensure that you have the resources you need to pay for your care, while also protecting your estate for your beneficiaries.

It is important to note that Medicaid laws vary by state and it is best to consult with attorney who specializes in elder law or Medicaid planning to understand how they apply to your specific situation.

Medicaid and Your Assets

Medicaid is a joint federal and state program that provides health coverage for certain individuals and families with low income. Because it is a needs-based program, in order to qualify for Medicaid, you must have limited income and assets. The exact limits on income and assets vary by state, but generally, to qualify for Medicaid, you cannot have more than a certain amount of assets or income.

One of the main concerns with Medicaid and assets is that if you have too many assets, you may not qualify for Medicaid coverage. However, there are ways to structure your assets to still qualify for Medicaid while also preserving your wealth for your beneficiaries.

One way to preserve assets is through the use of trusts. For example, you could create a Medicaid trust, also called a Qualified Income Trust or Miller Trust, which would allow you to qualify for Medicaid while also protecting your assets from being used to pay for your care.

Another way to preserve assets is through Medicaid planning by spend down strategy, this includes using your assets to pay for things like home improvements, medical expenses, and other items that will not count towards your asset limit for Medicaid.

It is also important to note that certain assets, such as your primary residence, personal property, and one vehicle, are typically excluded from the asset limit for Medicaid. Additionally, certain income-producing assets, such as a business, may be protected through a Medicaid planning strategy.

Allow Our Team To Help You Plan for Medicaid

Planning ahead of time for Medicaid is critical. We encourage you to reach out today so that you can structure a plan that will help you or your loved one to qualify for Medicaid when the time comes.

Work with an Experienced Corning Estate Planning Attorney
For more information, we recommend that you schedule an appointment so that you can learn the ins and outs of Medicaid. Roth Elder Law, PLLC would be happy to start that conversation. Call us today to schedule an initial meeting at 607-962-6162 or complete this intake form and we’ll be in touch.