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Medicaid Strategies
Having to place a loved one in a nursing home is an emotionally wrenching experience. To make matters worse, confusion often reigns supreme when navigating the Medicaid application process. Well-meaning family, friends and even professional advisers may give conflicting or incomplete advice causing families to needlessly lose their property and assets.
By planning ahead, you can easily protect all of your assets from the high costs of long-term care, either through the use of long-term care insurance (LTCI) or, where you do not qualify for LTCI, by setting up a Medicaid Asset Protection Trust (MAPT).
By planning ahead, you can easily protect all of your assets from the high costs of long-term care, either through the use of long-term care insurance (LTCI) or, where you do not qualify for LTCI, by setting up a Medicaid Asset Protection Trust (MAPT).
Medicaid Asset Protection Trusts (MAPT)
Long-term care insurance, which covers the cost of assistance with daily activities like eating, bathing and getting around, is a preferred option for many older adults who wish to age in place. However, this type of insurance is not a viable option for some people due to health issues, unaffordability or other reasons.
One of the most effective Medicaid strategies we implement at Ettinger Law Firm is establishing an MAPT that offers a practical alternative to LTCI. This tool enables you to list someone other than you or your spouse, such as an adult child, as a trustee to protect your assets while still allowing you to qualify for Medicaid.
Other Strategies
While we often recommend establishing an MAPT, we can also discuss other strategies based on your circumstances.
Medicaid Annuities
An annuity is a financial contract between an individual and an insurance company. Annuities can help people who have more assets than the Medicaid laws allow to qualify for the program. The individual purchases a lump-sum annuity for the value of the excess resources and then receives the full amount plus interest in equal installments over time.
Any outstanding payments upon the death of the annuitant go to the family.
Caregiver Agreements
This strategy allows older adults to pay for in-home care by transferring money to family members as compensation for their caregiving services. The compensation aspect is crucial — under Medicaid law, gifts made to family members to cover nursing home costs in the five years preceding an application for Medicaid make the individual ineligible for the program for a specified time frame.
Gift and Loan
This Medicaid planning strategy allows individuals to transfer approximately half of their assets to family members while loaning them the other half. The receiving family member must then repay the loaned amount over time. This technique is sometimes referred to as the “half a loaf” strategy because it allows individuals to gift half of their nest egg to their children or heirs.
Why Choose Ettinger Law Firm?
Ettinger Law Firm is one of New York's oldest and largest elder law and trust and estate planning law firm in New York. We focus on helping older adults develop and implement effective strategies for protecting their families, assets and future.
We understand that making decisions regarding these complex and emotional life issues can be challenging. Our low-key approach allows you to take your time and consider all the alternatives. We will be there to educate, advise and support you throughout the process.
Do you have questions about Medicaid strategies and determining which ones are best for your unique circumstances? Contact us today to learn more or schedule a free consultation.
- Medicaid Asset Protection Trusts (MAPT)
- Long-Term Care Insurance v. Medicaid Asset Protection Trust
- Medicaid Exempt Assets
- Applying for Medicaid
- Medicaid Annuities to Protect Assets
- Spousal Refusal
- Protecting Half on the Nursing Home Doorstep: The Gift and Loan Strategy
- Protecting Assets with Caregivers Agreements
- Sheltering Income with a Pooled Trust
- Home Care with Community Medicaid
