Paying for care
Medicaid planning
Medicaid planning is the legal arrangement of income and assets so a person can meet Medicaid rules for long-term care. It may involve trusts, spousal protections, and the timing of transfers. Rules differ by state. Mistakes can cause a penalty period with no Medicaid payment for long-term care.
Why it matters for your family
Medicaid has a 60-month look-back on transfers, so timing matters. A gift made in a hurry can delay coverage for months. Trusts, annuities, and exempt assets each have their own rules. A common mistake is to follow advice from a friend or a seminar without checking state law. The rules also change. An elder law attorney knows current state rules and can tell you what is allowed. Plan early if you can, and keep records of every transaction. HomeCare.com does not give legal advice. Early planning gives more choices, and a late rush gives fewer. Bring recent bank statements and a list of property to the first meeting.
Source: medicaid.gov
Read more: What is Elder Law and Do You Need an Elder Care Attorney?
Related terms
- Look-back periodThe look-back period is the time window Medicaid reviews when someone applies for long-term care coverage.
- Medicaid eligibilityMedicaid eligibility for long-term care depends on need, income, and assets.
- Annuity for Medicaid planningAn annuity for Medicaid planning is a contract in which a person pays a lump sum to an insurer in return for a stream of income.
- Income cap trust (Miller trust)An income cap trust, also called a Miller trust or income-only trust, holds part of a person's monthly income so the person can meet a state's Medicaid income limit for long-term care.
- Elder law attorneyAn elder law attorney is a lawyer who focuses on legal issues of older adults.
- Medicaid estate recoveryMedicaid estate recovery is the process where a state seeks repayment from a deceased Medicaid member's estate.
