Mistakes People Make in Medicaid Planning

1    THINKING IT IS TOO LATE TO PLAN.

Never too late even after a senior moved to a nursing home.

2     GIVING AWAY ASSETS TOO EARLY.

First it’s your money (or your house or both). Make sure sure you take care of yourself first. Don’t put your security at risk by putting it in the hands of your children.

Precipitous transfers cause difficult tax and Medicaid problems as well.

3     IGNORING IMPORTANT SAFE HARBORS CREATED BY CONGRESS.

Certain transfers are allowable without jeopardizing Medicaid eligibility. These include:  transfers to disabled children, care taker children, certain siblings and into a TRUST.

“Pay-back” trust for one who is disabled and under the age of 65..

Pooled disability trust at any age.

4     Failing to take advantage of protections for the spouse of a nursing home resident.

5     APPLYING for MEDICAID TOO EARLY.

6     APPLYING FOR MEDICAID TOO LATE.

7     CONFUSION ABOUT THE DIFFERENCE BETWEEN LIFETIME LIENS ON PROPERTY AND ESTATE RECOVERY.

 

Brian A Raphan PC

Brian A Raphan, Esq.

7 Penn Plaza   8th Floor

New York, NY

(212) -268-8200        Braphan@raphanlaw.com