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Medicaid Divestments in Plain English
Many people don’t realize that giving away money or property before applying for Medicaid can create problems. A divestment is transferring assets for less than fair market value during the five-year look-back period. This can include gifting cash, deeding farmland or a home to family, adding someone to a title, forgiving a loan, or selling…
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The 5-Year Look-Back in Plain English
Medicaid doesn’t just look at what you own today—it looks back five years. This is called the 5-year look-back. Medicaid reviews financial transactions for the 60 months before an application is filed. Gifts to children, transfers of land, or selling property for less than fair market value can all trigger penalties. If Medicaid finds a…
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Protect What You’ve Worked a Lifetime to Build
Long-term care costs can consume a lifetime of savings. Medicaid, not Medicare, helps pay long-term care costs. Proactive Medicaid planning helps you prepare in advance, before a crisis, so assets can be preserved, care options remain flexible, and stress is reduced. With thoughtful planning, you can protect a home, savings, and other assets while still…
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Lifetime Gifts: The Joy of Giving Now
If you have the financial means, consider giving your children some of their inheritance now. The benefit is twofold. First, you get to see the direct impact of your generosity, whether it is helping a child buy their first home, start a new business, or pay for your grandchildren’s college education. Second, depending on the…
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Medicaid-Compliant Promissory Notes
When the need for long-term care arises, the high costs can quickly drain a family’s savings. Fortunately, Medicaid rules allow certain planning strategies to help protect assets. One option is the use of a Medicaid-compliant promissory note. A promissory note is simply a written promise to repay money over time. To qualify as “Medicaid-compliant,” the…
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Can I Protect Assets from Long Term Care Costs?
Many families worry that a nursing home stay will leave nothing for a spouse or children. The good news is that there are strategies to protect assets. If care isn’t immediately needed, one option is long-term care insurance. Another option is to create an irrevocable Medicaid Asset Protection Trust, which can shelter assets from being…
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The $19,000 a Year Gift Exclusion and Medicaid
You can give up to $19,000 annually to anyone and do not have to report it to the IRS. You can give this amount to as many people as you like. This is the annual gift tax exclusion, which changes for inflation. Medicaid helps pay for long-term care services (e.g., nursing home care). There is…
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Enriching Life with a Special Needs Trust
A special needs trust (SNT) is a trust for a disabled beneficiary that doesn’t jeopardize the beneficiary’s eligibility for needs-based government benefits. SNT funds can generally be used to pay for almost anything that falls outside of basic support. There are two main types of SNTs: first-party and third-party. The main difference between them is…
Category: Medicaid
Eckert & Krautkramer, LLC
Protecting Assets, Preserving Dignity, Ensuring Peace of Mind
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