Common Pitfalls in Medicaid Planning

1. Is the income for a single individual applying for benefits over $2,163?

2. Are the assets for a single individual applying for benefits greater than $2,000?

3. If the applicant is married is their individual income over $2,163 and their joint income greater than $4,326?

4. If the applicant is married are their joint assets or assets held in trust greater than $23,448?

5. Is there a revocable living trust for either the applicant or in the case of a married couple the applicant and/or their spouse?

6. Does the applicant’s (and/or their spouse’s) estate or trust contain any of the following types of assets:

  • A home property in a family trust or revocable living trust
  • Second properties, parcels of land, or time shares
  • Life insurance
  • Annuities
  • Multiple vehicles including boats, RVs, motorcycles, quad runners, and vehicles that no longer function
  • IRA accounts
  • Investment accounts
  • Ownership interest in a business
  • Ownership in a promissory note or loan agreement
  • Ownership or participation in a family limited partnership

7. Has the potential applicant or spouse sold, traded or given away any money, vehicles, or assets within the last 60 months?

This includes, but is not limited to: birthday presents, Christmas presents, graduation presents, marriage gifts, tithing, as well as more sizable gifts or denotations to friends, family, or organizations.

8. Can the applicant and/or spouse produce:

  • A valid photo ID
  • A birth certificate
  • A certificate of Naturalization
  • If a lawful permanent resident alien: a valid and current I-155 card
  • If currently married; a copy of the marriage license
  • If a veteran; a copy of their DD-214 and other related discharge papers
  • Proof of all income showing both gross and net amounts currently being received

If you answered “yes” to questions 1-7, or “no” to any part of item 8, then it is likely you may have issues that could lead to an ALTCS denial. Our Public Benefits staff has over fifty years of combined experience in qualifying people for ALTCS and Veterans benefits. Let us help you get a positive result.

Goals Of Planning for Medicaid

  • Provide a smooth transition from private pay to public benefits.
  • Minimize the out-of-pocket expenses to the applicant and their spouse.
  • To shelter and protect the assets within the framework that the state allows.
  • Review all the options and choose those with the least risk and greatest Benefit.
  • Avoid or minimize the State’s ability to perform estate recovery.