Medicaid & Medicare Planning

We hope to die peacefully at home in our own beds. But the reality is that nearly 7 out of 10 Americans will spend time in long-term care before they pass away. The average length of stay in a long-term care facility in Kentucky is 3.8 years. At today’s average cost, that will result in $108,000 a year, or $410,000 per person. And if you are married, that number doubles to $820,000. Who can afford that? If you can, chances are that you would then die penniless. That explains why you need Medicaid planning.

Medicaid benefits are convoluted and confusing. There are many myths that add to this confusion, which is why it’s best to have an elder law attorney guide you through the maze. One of the key things to remember is that Medicaid, just like Medicare, is a federally guaranteed coverage that you’ve already paid into for the duration of your entire career through your payroll deductions. This is something you’ve earned, not something you are taking from others. The only difference between Medicare and Medicaid is that Medicare is automatic, and Medicaid has criterion that you must reach in order to be eligible. We are here to guide you through the complex process.

In order to receive Medicaid, there is a cap on your financial assets. If you exceed the maximum, you’ll have to use your own money to pay for long-term care before you can receive the benefits you paid into. You may be thinking, “if I have too many assets to qualify, I’ll just start giving money away to loved ones so that I can qualify.” Please don’t make that mistake. It’s far more complicated than that, and that approach could leave you huge penalties and you would still not qualify. We can help you develop strategies that will allow you to keep your money without sacrificing your benefits.

In this area of planning, every aspect of your unique situation MUST be considered and impacts every other part of your financial planning strategy. One mistake in this area can cost thousands of dollars and months of time and trouble to repair. Relying on outdated information from the internet or a general practice attorney who does not focus on this unique area of law can cost you the farm, literally!

Medicaid eligibility hinges on strict income and asset limits, which vary by state. For 2023, single applicants typically cannot exceed 2,000. However, nursing home costs—averaging 108,000 annually in Kentucky—can rapidly deplete savings, forcing families to navigate the “spend down” process.

This involves strategically reducing assets to qualify for Medicaid, but missteps (like abrupt gifts to family) may trigger penalties or denial of benefits. Proper planning ensures your monthly income and resources align with eligibility rules while preserving funds for non-Medicaid expenses, like personal care items.

Medicaid & medicare planning attorneys can analyze your financial landscape, ensuring compliance without jeopardizing your spouse’s financial security or legacy goals.

Medicaid Asset Protection Trusts (MAPTs) and Qualified Income Trusts (QITs) are powerful tools to protect assets while meeting Medicaid eligibility. MAPTs shield assets like homes or investments from being counted toward Medicaid’s asset limit, provided they’re established 5+ years before applying. QITs, meanwhile, address income overages: If your monthly income exceeds Medicaid’s cap, funneling excess funds into a QIT ensures compliance.

Both require precise legal structuring to avoid penalties, especially during the Medicaid application process. For example, improperly funded trusts could delay coverage or force the liquidation of assets. Veterans benefits or disability planning may further complement these strategies, but consult an attorney to align trust types with your long-term care needs.

Of course, the best time to plan for the need for long-term care is long before you suspect you’ll need it, but IT IS NEVER TOO LATE TO PLAN. We are here to help at any point. Your initial consultation is free, and you can reach us at (859) 544-6012 or contact us online to start planning today.

We are here to make your life, and the lives of your loved ones, easier.

By planning ahead, you can maintain the quality of life you’ve earned without giving up the benefits you deserve. Some of the ways we can help include:

Of course, the best time to plan for the need for long-term care is long before you suspect you’ll need it, but IT IS NEVER TOO LATE TO PLAN. We are here to help at any point. Your initial consultation is free, and you can reach us at (859) 544-6012 or contact us online to start planning today.

We are here to make your life, and the lives of your loved ones, easier.