Medicaid Planning

To qualify for Medicaid assistance for long term care expenses, an individual cannot be very wealthy at all... assets must be "spent down" before qualifying for assistance. Accordingly, Medicaid Planning is critical for many older individuals with enough assets to prevent them from qualifying for Medicaid, yet without enough assets to fund the cost of their care. Within the context of Elder Law, Medicaid Planning is often divided into two phases: Proactive Planning and Crisis Planning.

Proactive Planning

Proactive Planning, as the name implies, is done ahead of time while you still have time to catch your breath and examine a variety of planning options. It would be ideal for you to have notice many years in advance regarding when or even if you will need nursing home care, assisted living services, or in-home care in order to plan, but that is not the world we live in. The need for care can be sudden and sneak up overnight. Even more terrifyingly, the sudden need for care has depleted many a person's life's savings and assets in just a few short months or years. A small degree of preparation and foresight can go miles towards minimizing this often painful process.

In Proactive Planning, we consider what your assets are, what your income is, what your income will be once you quit working if you have not retired yet, what your current health is, and what direction you think believe it will take over the course of time. We also consider what estate planning and elder law components you may already have in place. Once we know this, we are usually able to formulate a plan that is modifiable as your situation changes.

Crisis Planning

Advanced planning is optimal, but even if care is needed right away, take heart. There may yet be a number of strategies estate planning and elder law attorneys can use to help you. These strategies might include using annuities to salvage part of a couple's assets, using a Medicaid Asset Protection Trust as a means to pay for only 5 years of care instead of more years once an illness or disability is known. Assets might also be restructured in order to produce more income to pay for the costs of long term care (this is typically done in collaboration with a financial planner and not by a law firm).

Even if your situation seems dire and spending most of your assets on care seems inevitable, consider consulting with an estate planning and elder law attorney so you know what your options are. You may be able to utilize strategies you did not realize were available. Our firm makes no guarantees as to your unique situation, and we cannot give you any insight if you don't ask.

A Brief Word on Medicaid Applications

Sometimes nursing homes offer to apply for Medicaid on your behalf. Whether you should allow them to do this is dependent on your situation. If you own no home, have no savings, and do not have any accounts or other assets to speak of... in other words nothing to "spend down" to qualify for Medicaid... there is generally no harm in allowing the nursing home to do this for you.

However, if you do have a home, savings, or other accounts... assets Medicaid would require you to spend down before it covers your long term care expenses... you should consult an elder law attorney first. Although some nursing homes will make you aware of this, not all will. Nursing homes are not in the business of protecting your assets; they stay in business by getting paid, whether that is by you or Medicaid. Too often, applications are made that require people to spend down assets when a portion of those assets could have been protected with a little planning.