Gershberg & Associates, LLC

Attorneys and Counselors at Law

410-654-3850
  • Home
  • Who We Are
    • About Our Firm
    • Meet our Team
    • Speaker Connection
  • How We Can Help
    • Asset Protection and Business Planning
    • Estate Litigation
    • Estate Tax & Gift Figures
    • Family-Owned Businesses
    • Financial Planning Assistance
    • Immigration
    • Incapacity & Caregiver Support
    • IRA Inheritance Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid & Elder Law Planning
    • Minor Children & Young Adult Planning
    • Pet Planning
    • Trust Administration and Probate
    • SECURE ACT
    • Special Needs Planning
    • Wills and Trusts
    • Estate Planning Services
  • Elder Law
    • Are You a Caregiver?
    • Coping With Alzheimer’s
    • Emergency Medicaid and Nursing Home Planning
    • Guardianship and Conservatorship
    • Hospice Care
    • Medicaid & Elder Law Planning
    • Veterans Pension Benefits
  • Resources
    • DocuBank
    • Elder Law Resources
      • Elder Law Reports
      • Elder Law & Medicaid Definitions
    • Estate Planning Resources
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Families Without an Estate Plan
      • Incapacity Planning
      • LGBTQ Estate Planning
      • Probate
      • Trust Administration and Probate
    • LGBTQ Resources
    • Probate & Trust Administration Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Trust Administration & Probate Definitions
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
    • Special Needs Resources
  • Blog
  • Workshops
  • Contact Us
Is It Too Late for Medicaid Planning to Help Me?
arrow_downward

Is It Too Late for Medicaid Planning to Help Me?

September 15, 2022 by Richard Gershberg

Experienced estate planning attorneys typically advise clients to incorporate a Medicaid planning component in their estate plan long before they reach retirement age. For one reason or another, however, you may not have done so and are suddenly facing the need to qualify for Medicaid. As you may now realize, the need to qualify for Medicaid can put your hard-earned assets at risk causing you to wonder if it is too late for Medicaid planning to help. As we, the Owings Mills Medicaid planning attorneys at Gershberg & Associates, LLC explain, it may not be too late to plan for Medicaid to help you if you find yourself facing the need to qualify for Medicaid.

Why Would I Need to Qualify for Medicaid?

Around retirement age, we all stand close to a 70 percent chance of eventually needing some type of long-term care (LTC) services in the future. The cost of LTC, should you need it, will be high. Nationwide, the average cost of a year in LTC for 2021 was over $100,000. As a Maryland resident, however, you will likely pay more than the national average, with the average running over $140,000 per year in 2021. 

While the high cost is troubling by itself, the bigger problem may only become apparent when you realize that Medicare will not cover your LTC expenses. The same goes for most private health insurance policies unless you purchased a separate long-term care policy. The good news is that Medicaid does cover LTC. As a result, over half of all seniors currently in an LTC facility rely on Medicaid for help paying at least some of their LTC bills. First, however, you must qualify for Medicaid which can be challenging if you did not include Medicaid planning in your estate plan.

Why Is Qualifying for Medicaid a Challenge?

To qualify for Medicaid benefits, you will need to meet Medicaid’s eligibility requirements for seniors, meaning you must meet the income and asset tests. The income limit is tied to the Federal Poverty Level and will change depending on the Medicaid category, your geographic location, and household size. The income limit is not where most seniors encounter a problem though. It is the extremely low asset limit that typically poses a problem for seniors who did not plan accordingly. Medicaid does exempt certain assets, such as your primary residence and a vehicle; however, many seniors have accumulated a retirement nest egg full of non-exempt assets that easily exceed the countable resources limit. If your assets exceed the limit, your application will be denied and you will have to “spend down” your assets before applying again, meaning you will be expected to use those assets to cover your LTC expenses until the assets are gone. Furthermore, Medicaid’s five-year “look-back” rule prohibits you from transferring your non-exempt assets at the last minute in anticipation of the need to qualify for Medicaid.

It May Not Be Too Late for Medicaid Planning to Help

The best way to ensure that all your assets are protected is to plan early and plan well. While last-minute Medicaid planning may not be able to protect all your assets, it can often protect some of them. The key to getting the most out of last-minute Medicaid planning is to consult with an experienced Medicaid planning attorney the moment you realize you might need help from Medicaid. The tools and strategies implemented in your situation will depend on your unique circumstances; however, one goal will be to legally convert as many non-exempt assets as possible into exempt assets.  One common strategy is to take non-exempt assets, such as cash or investment accounts, and use them to pay off or pay down a mortgage. Because the equity you have in your primary residence is exempt (to a maximum limit), you may be able to convert those non-exempt assets into exempt assets.

Contact Owings Mills Medicaid Planning Attorneys

For more information, or if you have additional questions or concerns about how Medicaid planning can help you at the last minute, contact experienced Owings Mills Medicaid planning attorney, Richard L. Gershberg and his team at Gershberg & Associates, LLC by calling 410-654-3850 to schedule an appointment.

  • Author
  • Recent Posts
Richard Gershberg
Richard Gershberg
Attorney at Gershberg & Associates, LLC
Mr. Gershberg, an active member of his community, is well aware of the growing importance of estate planning, and dedicates himself to informing the public of the need for careful attention to their specific situations.
Richard Gershberg
Latest posts by Richard Gershberg (see all)
  • The Importance of Having an Estate Plan - January 18, 2023
  • Tax Planning for 2023 - January 11, 2023
  • Tis the Season for Giving - January 5, 2023

Gershberg & Associates, LLC

Gershberg & Associates, LLC

Search

Download Our Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Address

Gershberg & Associates, LLC
11419 Cronridge Drive, Suite 7
Owings Mills, MD 21117-6281
Phone: (410) 654-3850
Fax: (410) 654-3880

Business Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 2:00 PM
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us
Logo
  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Owings Mills Estate Planning Attorney Richard L. Gershberg is proud to serve the Owings Mills, Maryland and surrounding areas.

© 2023 American Academy of Estate Planning Attorneys, Inc. All rights reserved.