Kearns & Kearns - Special Needs Trust, Estate Planning, Medicaid, Probate, Law Offices

Overview | Eligibility | 10 Common Medicaid Mistakes

10 Common Medicaid Mistakes

1. If I don’t transfer assets five years before entering a nursing home, I cannot do it at all.
FALSE – The five year look-back rule transfers on or after February 8, 2006. Different rules apply to transfers prior to February 8, 2006. Consult with your Elder Law Attorney.

2. I can’t transfer assets after I am already in a nursing home.
FALSE – A number of Medicaid planning strategies can be used, that involve exempt transfers.

3. To protect my house, I should give it to my children right away.
FALSE – You should first consider the capital gains tax consequences, Medicaid consequences, and tax credits available to the elderly and veterans.

4. I should spend down my assets and make transfers immediately.
FALSE – This depends on the state of your health, your martial status and your financial situation.

5. You may not apply for Medicaid within five years of making a gift.
FALSE – There are different rules that apply, depending upon when the gift(s) took place and who received the transfers. Consult your Elder Law Attorney.

6. There is no hurry to begin Medicaid transfers.
FALSE – Time is your enemy. The date on which you transfer assets can substantially impact your eligibility date.

7. I don’t need to disclose assets to the State Medicaid agency if I am not reporting income from those assets on my income tax return.
FALSE – It is a crime not to disclose assets to the State.

8. If one spouse goes to a nursing home, all of his or her income goes to the nursing home.
FALSE – In many circumstances, the community spouse may keep some or all of the institutionalized spouse’s income.

9. All nursing homes and assisted living facilities accept Medicaid.
FALSE – Not all of them do.

10. If a facility takes Medicaid, I will not have to pay privately if I am eligible for Medicaid.
FALSE – Some facilities may require a period of private pay as a condition for admission.

Connecticut Medicaid

The planning and the application process for Medicaid is very complex. The burden of going through this difficult process can be eased with the support of competent legal counsel. At Kearns & Kearns PC, we have experienced attorneys who specialize in elder law, probate, and estate planning issues, including Medicaid. Rather than dealing with State forms and other paperwork by yourself, you can turn to someone with the specialized expertise and knowledge needed to make sure you keep control of as much of your assets as possible while becoming eligible for Medicaid.