Estate Planning · Haute Lawyer Network
What Is Medicaid Planning?
Last reviewed: June 2026
Medicaid planning uses legal strategies to help individuals qualify for Medicaid long-term care benefits while preserving assets for their families.
Without planning, nursing home care averaging $8,000-$12,000 per month can deplete a lifetime of savings. Medicaid is means-tested — requiring countable assets below $2,000-$3,000 for single applicants in most states.
Exempt assets include the primary residence, one vehicle, household goods, and prepaid burial arrangements.
Common strategies include irrevocable Medicaid Asset Protection Trusts for those with adequate lead time, spousal transfers for married couples, converting countable assets into exempt ones, and Medicaid-compliant annuities.
Frequently Asked Questions
What is the five-year lookback period?
Medicaid reviews all asset transfers made in the five years before application. Transfers for less than fair market value during this period result in a penalty period of ineligibility.
Can I give assets to my children to qualify?
Gifts within five years create penalty periods. Gifts made more than five years before application generally do not affect eligibility.
Can the state take my home after I die?
Yes, through Medicaid estate recovery. Proper planning — including irrevocable trusts — can protect the home.
Does Medicare cover long-term nursing home care?
Medicare only covers short-term skilled nursing care — up to 100 days after a qualifying hospital stay. Medicaid is the primary payer for long-term custodial care.
When is it too late to do Medicaid planning?
It is rarely too late. Even after nursing home admission, crisis planning strategies may be available — particularly for married couples.
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