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medicaid planning and asset protection Archives

Can my estate be subject to Medicaid recovery in New Jersey?

Many people in New Jersey rely on Medicaid benefits to pay for their care needs as they age. However, what they may not know is that upon their death, Uncle Sam may come knocking, seeking recovery from the deceased's estate of what was paid for using Medicaid benefits.

An overview of Medicaid expansion in New Jersey

Many aged individuals in New Jersey plan on utilizing Medicaid benefits to pay for their long-term care needs. However, it is important to understand how Medicaid has changed over the years. Eligibility hinges on a person's income level, but with Medicaid expansion, more people have been able to apply for and receive benefits.

Medicaid planning and the five-year 'look-back' period

While some people in New Jersey may have long-term care insurance or a significant amount of savings to pay for nursing home care, many people plan on using Medicaid benefits. A person may qualify for Medicaid benefits if their monthly income does not exceed a certain amount that is set by the federal government (although some states have even lower limits).

How can a qualified income trust be used in Medicaid planning?

To be eligible for Medicaid benefits in New Jersey (referred to as Long Term Services and Supports), a person's income and resources cannot exceed a certain dollar amount annually. However, does this mean that a person must be impoverished before they can begin receiving LTSS? Not necessarily.

Long-term care needs should not deplete your hard-earned assets

While sometimes people in New Jersey make plans for a potential stay in a nursing home well before they need such care, many times a person's admission to a long-term care facility occurs due to a sudden illness or disability. When this happens, the person's family may fear that all their loved one's assets will be handed over to the facility to pay for their care.

How can Medicaid planning address 'estate recovery'?

Under federal and New Jersey law, once a Medicaid beneficiary dies, the government recovers funds from the deceased's estate for any services the deceased received after age 55 that were paid for using Medicaid benefits. This is known as "estate recovery."

New Jersey attorneys stand by your side in a Medicaid appeal

A person in New Jersey in need of nursing home care, they may be relying on Medicaid to help finance the care they need. However, it is the unfortunate fact that sometimes a person's initial application for Medicaid is denied, even if they have spent the time to try to develop a strong Medicaid planning strategy. This can be incredibly discouraging, but it does not have to be the end of the story. This is because it is possible to appeal a denied claim for Medicaid benefits.

How can one protect assets from the five-year lookback period?

Not everyone in New Jersey has, or can afford, long-term care insurance, which can be used for paying for nursing home care. Nevertheless, people should have a plan for how they will afford a stay in a nursing home, should they need it in their old age. This is when Medicaid planning becomes important.

When can certain annuities be used in Medicaid planning?

Many people in New Jersey may have decided that they will rely on Medicaid in part to fund their stay in a nursing home, should they need such services in their old age. However, to do so, a person's countable assets cannot be valued above a nominal level, which is quite low. Most people do not want to impoverish themselves or deplete their estate, just to be able to afford nursing home care. Fortunately, people in such situations have asset protection options, and one of these options may be a Single Premium Immediate Annuity.

Medicaid planning and the qualified income trust

People in New Jersey who are in need of nursing home care or other types of assisted living care may be planning on using Medicaid benefits to fund such care. In order to qualify for Medicaid, a person's income must be below a certain level. However, through the use of a Qualified Income Trust it is possible for those with higher incomes to receive Long Term Services and Supports if they are otherwise eligible to do so.

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