Medicaid

Medicaid planning can be broken down into two categories: Medicaid preplans and Medicaid crisis plans.

Medicaid preplanning is a proactive process that looks to protect a client’s assets while preparing for the possibility of needing long-term nursing home care. Preplans often include asset protection trusts. Medicaid’s rule states that the Asset Protection Trust must be created and funded five years before the individual applies for Medicaid. This means you have to see an Elder Law attorney specializing in Medicaid sooner rather than later to ensure you will make it to those five years. If you do not make it the five years, we will look at Medicaid crisis planning.

Medicaid crisis planning differs depending on whether the applicant is married or single.

Married applicants are typically able to protect larger amounts of assets due to the Spousal Impoverishment Act, which allows us to protect assets that the healthy spouse can use to pay for their own care in the community. Simasko Law has the ability to protect 100% of a married person’s assets and income, and get one spouse in a nursing home on Medicaid for $0.00/month.

Single applicants have fewer options, and generally have to choose between spending assets down or strategic gifting along with a Medicaid annuity. Asset spend downs are done by first looking to see if money can be spent of exempt assets like a vehicle, prepaid funeral contract, or a small life insurance policy.

Strategic gifting looks at making an intentional divestment of half of the applicant’s assets and concentrating the remaining funds into a Medicaid annuity. This annuity turns the assets into an income stream, and that monthly income pays the nursing home during the divestment period of non-Medicaid coverage.