Nassau County Medicaid Planning Lawyer

At the very least, to qualify for Medicaid in New York you must:

• be a resident of the state; 
• be a U.S. national, citizen, permanent resident, or legal alien;
• have a need for healthcare/insurance assistance in such a way that your financial situation would be considered low income; and
• be pregnant, responsible for a minor (18 years or younger), blind, disabled, or have a disabled member in your household, or 65 years or older.

If you do not meet these qualifications, such as the income qualification, you may not be as easily eligible to receive assistance. However, as we will discuss in the next section, there are certain ways a Medicaid planning lawyer can better help you reorganize your situation so that you do eventually qualify for financial assistance.

Why Is Medicaid Planning Useful?

Medicaid planning is an advanced estate planning tool that can help you prepare you for eligibility for Medicaid assistance, even if you think your income might be too high. It will prove very beneficial to work with a Medicaid planning attorney because they might help you get a larger chance at obtaining assistance despite the eligibility requirements. Note that you should start planning early; people typically start on their Medicaid plan at least 5 years before they anticipate the need for long-term care. 

Medicaid planning may involve a range of things to lower your income and asset base that are examined to determine your eligibility. For instance, we might help you do the following in order to reorganize your assets and qualify for Medicaid:

• planning the purchase of annuities;
• gifting cash and other assets to family members;
• buying long-term care insurance;
• transferring the title to your house while holding onto some rights to it;
• placing certain assets into an irrevocable Medicaid planning trust;
• placing excess income into a trust managed by a non-profit.

Do not worry if you do not initially meet the eligibility requirements for Medicaid assistance. Chances are, at some point in the future you might. Long-term care is costly and can feel overwhelming as you age. Our firm is here to provide comprehensive legal support so you can feel comfortable and assured about your future. You can also check out our Legal Resources to find additional resources that can help you understand Medicaid regulations. Attorney Orly Taber, Esq. has made it her personal mission to give the elderly glory and respect; you can count on her to safeguard your rights to Medicaid assistance.

How Medicaid Planning Can Protect Your Home and Assets

One of the primary concerns when applying for Medicaid is protecting your home and other assets from being used to cover long-term care costs. Here are some strategies that can help preserve your assets:

• Transferring Property to a Spouse or Children
  Transferring ownership of your home to a spouse or children can help protect it from Medicaid’s asset evaluation. The property may no longer be considered part of your assets if it's owned by someone else, as long as the transfer is done properly.
• Using a Life Estate
  A life estate allows you to transfer your home to a family member while still retaining the right to live in it for the rest of your life. This can protect the home from Medicaid liens while ensuring you still have a place to live.
• Irrevocable Trusts
  Placing your home into an irrevocable trust can help ensure it’s not counted as part of your assets when applying for Medicaid. Once in the trust, you no longer own the property, which can help maintain eligibility.

The Importance of Early Medicaid Planning

Planning for Medicaid should be done as early as possible. Ideally, you should begin at least 5 years before you expect to need long-term care. Here’s why early planning is crucial:

• Avoiding Penalties
  Medicaid has strict rules regarding asset transfers. If you transfer assets within 5 years of applying for Medicaid, you may face penalties. By starting early, you can avoid these penalties and still qualify for Medicaid when you need it most.
• Maximizing Asset Protection
  The earlier you plan, the more options you have to legally reduce your assets. This can include gifting to family members, setting up trusts, or purchasing long-term care insurance.
• Reducing Stress
  Early planning gives you peace of mind, knowing that your assets and healthcare will be managed according to your wishes without rushing to meet deadlines.

Common Medicaid Planning Mistakes to Avoid

Medicaid planning can be tricky, and many people make mistakes that can hurt their chances of qualifying. Here are a few common errors to avoid:

• Transferring Assets Too Late
  Waiting too long to transfer assets may result in penalties or ineligibility. Make sure to start planning early enough to comply with Medicaid’s look-back period.
• Improperly Structuring Gifts
  Gifts made within the 5-year look-back period can result in disqualification. It’s important to structure gifts and transfers properly to avoid any issues.
• Not Consulting an Attorney
  Medicaid planning laws can be complex. Without proper legal guidance, it’s easy to make mistakes that can have long-term consequences. Working with a Medicaid planning attorney ensures you’re following the correct procedures.

By avoiding these mistakes and starting early, you can protect your assets and make sure you’re eligible for Medicaid when the time comes.

Frequently Asked Questions (FAQ) About Medicaid Planning

What is Medicaid planning and why is it important?

• Medicaid planning involves organizing your financial and healthcare resources to ensure you meet the eligibility requirements for Medicaid assistance. It’s important because it can help protect your assets, including your home, from being used to cover long-term care costs.

Can I give away my property to qualify for Medicaid?

• Yes, you can transfer property, but Medicaid has a "look-back" period of 5 years. Any property transfers made within this time could result in penalties or delays in Medicaid eligibility. It's crucial to consult with a Medicaid planning attorney to understand the best way to structure these transfers.

How do I protect my home from Medicaid estate recovery?

• You can protect your home by placing it in a trust, transferring it to a spouse, or using a life estate. However, each option has its rules and implications. A qualified attorney can guide you in selecting the right option to safeguard your home.

Is it possible to qualify for Medicaid if I have too many assets?

• Even if you have assets, there are strategies like creating trusts, making gifts, or purchasing annuities that can reduce your countable assets and help you qualify for Medicaid. Early planning is key in this process.

How early should I start Medicaid planning?

• It’s recommended to start Medicaid planning at least 5 years before you anticipate needing long-term care. This allows time to transfer assets and organize your finances without incurring penalties.

Can I still receive Medicaid if I have a significant income?

• You may still qualify for Medicaid if you have a high income, but it may require additional planning, such as placing income into a special trust or purchasing long-term care insurance. Consulting with a Medicaid planning attorney will help you understand your options.

What are the consequences of not planning for Medicaid early?

• If you don’t plan ahead, you may face penalties, ineligibility, or a delay in receiving Medicaid benefits when you need them most. Additionally, your assets could be at risk of being used for long-term care costs, which could affect your financial security and your family’s inheritance.