• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Trust Administration
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate and Gift Tax
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Incapacity Planning
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » Can You Give Away Asset to Qualify for Medicaid?

Can You Give Away Asset to Qualify for Medicaid?

January 22, 2020 by Ellen LaPlante

long-term careBefore we get to the question that serves as the title of this post, we have to provide some background information for the uninitiated.

You may wonder why Medicaid is relevant to senior citizens when most elders will qualify for Medicare. It is true that both programs are government run health insurance programs, and they do cover many of the same things.

There is however a huge difference that will explain a lot. Medicare will not pay for custodial care. This is the type of care that you would receive in a nursing home or assisted living community. For some, in-home custodial care is also an option.

Medicaid will pay for this form of care.

According to statistics provided by the United States Department of Health and Human Services, the majority of senior citizens who are reaching the age of 65 will eventually need long-term care.

Simply put, the care is not affordable for most elders. We practice in the Albany area, and the average annual charge for a room in a nursing home here exceeds $135,000 per year.

The Medicaid Solution

Though Medicaid will cover long-term care costs, it can be difficult to qualify, because there are asset and income limits. The limit for countable assets is just $2000 for an individual in most states. Fortunately, some of your most valuable assets do not count, including your home up to $878,000 of equity in New York in 2019.

Look-Back Period

Now that we have set the stage, we can get to the point. When it comes to countable assets, you may wonder if you can simply give away resources to your loved ones when and if you need long-term care. You would essentially be giving them their inheritances in advance.

It is possible to divest yourself of assets in advance of applying for Medicaid coverage. However, you must be aware of the five-year look-back period.

The program does not want people to start divesting themselves of assets immediately after they find out that they need long-term care, because that would “playing the system” for want of a better phrase. This is why the 60 month look-back is in place.

If you apply for Medicaid, program officials will examine your financial transactions going back five years. You will be penalized and your eligibility will be delayed if they find that you have given away assets within five years of submitting your application.

The length of the penalty is determined by comparing the amount of the divestitures to the average cost of long-term care in our region of New York. For example, if the average they used was $130,000 per year, and you gave away $260,000 within five years of applying, your eligibility would be delayed by two years.

Medicaid Planning Special Report

In this post we have provided some basic information about the Medicaid look-back period. If you would like to obtain more comprehensive information about the Medicaid program, download our special report.

This report is being offered free of charge, and you can get your copy through this link: Medicaid Planning Report.

Attend a Free Seminar!

Our attorneys are holding a series of informative seminars over the coming weeks, and we really enjoy meeting our neighbors in this manner.

All too often, we are asked to do some damage control because the mistakes were made, and we do our best. However, it is disconcerting when you realize that the negative circumstances could have been avoided through the proper advance planning.

This is why we go the extra mile to reach out, and we urge you to attend the session that fits into your schedule. To see the dates and obtain detailed registration information, visit our seminar page and follow the simple instructions after you click on the session that works for you.

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • How to Spot Signs of Elder Abuse - August 4, 2022
  • Should I Have Long-Term Care Insurance? - July 12, 2022
  • What Can I Do to Discourage a Will Contest after I Am Gone? - June 30, 2022

Filed Under: Uncategorized Tagged With: Elder Law, medicaid planning, nursing home asset protection

Other Articles You May Find Useful

Essex Junction elder law attorneys
How to Spot Signs of Elder Abuse
Essex Junction trust attorneys
Is a Trustee Paid?
How Do I Trust Thee…Part III
Essex Junction estate planning attorney
What Happens If I Die Without a Will in Vermont?
How Do I Trust Thee…Part II
How Do I Trust Thee…Part I

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

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.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2022 American Academy of Estate Planning Attorneys, Inc.