What is Medicaid Planning?
Medicaid Planning is the preparation of one’s finances in order to qualify for Medicaid to pay for services such as in home care or nursing facility expenses. The process involves determining what assets and income a person has. If those assets and income would disqualify an applicant from obtaining Medicaid, then a plan is created to gift or convert those assets into non-countable assets, and direct income out of the applicant’s name using various methods such as using pooled income trusts. This is not a do-it-yourself venture because if done improperly, significant penalties and taxes may be incurred. Additionally, you may still not qualify for Medicaid.
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Did You Know?
Medicare does not cover long term care living or services such as nursing home or community based services.
Advance and Crisis Medicaid Planning
Senior care living and services are expensive, and costs are increasing every year. Medicaid can help pay for these expenses. Medicaid Planning is essential to preserving assets while qualifying for benefits. If you are planning for the future or if you need coverage now, we have options to help you.
What is the income limit for Medicaid?
The income limit or cap for Medicaid eligibility in New Jersey for 2024 is $2,829 per month, with a personal needs allowance of $50. New York’s income limit for 2023 is $1,677 per month.
How do I protect my assets from Medicaid?
Asset protection is one of the primary goals of Medicaid Planning. Advance Medicaid Planning depends primarily on Medicaid compliant trusts and certain products offered by financial planning institutions. The goal is to transfer assets out of the potential applicant’s name and into these types of trusts or converting “countable assets” into “non-countable assets.” Crisis Medicaid Planning relies on the same methods, but careful calculation must be made to maximize the benefits in a timely manner.
What is the asset limit for Medicaid?
Medicaid Asset Limits vary by state. In 2024 the Asset Limit for Medicaid in New Jersey is $2,000 for an individual and $3,000 for a couple. In New York the Asset Limit is $30,182 for an individual and $40,821 for a couple.