Medicaid Planning

Think Ahead. Plan Ahead. Act Now.

Medicaid planning involves time-sensitive decisions and deadlines. A skilled nursing home can cost $100,000+ per year. Without planning, your family's lifetime savings can disappear in a few years. Medicaid can cover these costs—but only if you follow the rules. Starting late can mean losing the opportunity to protect assets legally. Strategic planning done in advance makes all the difference.

Understanding NJ Medicaid Eligibility

New Jersey Medicaid has specific rules about income and assets:

• Income Limit: $2,829.74 per month (subject to change—ask my office for current limits)
• Asset Thresholds: Strict limits on countable resources. Some assets are exempt; others must be spent or transferred
• Residency & Citizenship: You must be a US citizen or legal resident and a NJ resident

Note: These figures are current as of the site publication date. Medicaid limits change annually. Contact my office for the most current numbers.

The Five-Year Look-Back

Medicaid has a "look-back" period: it examines all financial transfers you made in the five years before applying for benefits. If you gave away assets without receiving fair market value—even to family members—Medicaid may penalize you by delaying coverage. However, some transfers are exempt:

• Transfers to a spouse
• Transfers to disabled adult children for their care
• Transfers to caregiver children who provided care in your home (under specific conditions)
• Transfers to a trust for disabled beneficiaries

Strategic timing and proper structuring can help you give to your family while preserving eligibility.

Protecting the Community Spouse

When one spouse enters a nursing home and the other remains at home, Medicaid has rules to prevent impoverishment of the community spouse (the one not in institutional care). The healthy spouse can retain:

• One-half of the couple's combined countable resources, up to a minimum of $29,724 and a maximum of $148,620
• The home (regardless of value, if they plan to return home)
• One vehicle
• Personal property and household furnishings

Planning can help maximize what the community spouse retains while the institutionalized spouse qualifies for Medicaid.

Qualified Income Trusts

If your income exceeds Medicaid limits, a Qualified Income Trust (QIT) can help you become eligible. Income placed in the trust is redirected to cover care costs, bringing you within income limits. This is a technical strategy that requires careful implementation.

Personalized, Not Generic

Don't rely on outdated internet information or generic advice. Medicaid rules change, and what worked five years ago may not apply today. Every family's situation is unique—combining different asset types, income sources, family dynamics, and goals. I take time to understand your full picture and recommend strategies tailored to your circumstances.