The Challenge
How Medicaid Planning Can Protect Family Assets
Arnold and Rose worked hard throughout their lives to build their nest egg, with their home representing their most significant asset. They were worried about:
- The rising costs of nursing home care
- Protecting assets for their two children
- Maintaining eligibility for Medicaid benefits if needed
- Avoiding estate recovery
Our Solution
After carefully reviewing their situation, we developed a comprehensive plan leveraging several key legal provisions:
- We restructured their home ownership from joint tenancy to tenants in common, giving each spouse individual control over their 50% share of the property.
- We created carefully crafted wills for both Arnold and Rose including supplemental needs trust provisions for the surviving spouse. This strategy takes advantage of a key provision in 42 USC 1396p, which does not impose transfer penalties on trusts created through wills.
- We implemented a non-statutory power of attorney to provide additional flexibility for future Medicaid asset protection planning.
Our Process
This planning strategy we created provides multiple long-term advantages. It:
- Protects the family home from being counted as a resource for Medicaid eligibility
- Preserves assets for the benefit of the surviving spouse and ultimately their children
- Maintains flexibility for additional asset protection planning if needed
- Creates a framework for managing assets complying with both federal and state law
It rests on a solid legal framework:
- Georgia Medicaid rules limit countable resources to $2,000 for eligibility for a single person
- Assets in a properly structured supplemental needs trust don’t count toward this limit
- Federal law (42 USC 1396p) specifically allows testamentary trusts without transfer penalties
- Assets in supplemental needs trusts are protected from Medicaid estate recovery
Beyond the Legal Strategy: While the technical aspects of this plan are important, equally crucial was our approach to working with Arnold and Rose. We took time to:
- Listen carefully to their concerns and goals
- Explain complex legal concepts in understandable terms
- Consider not just their immediate needs but potential future scenarios
- Provide ongoing support and guidance throughout the process
The power of attorney we put in place ensures Rose can continue to protect assets for their children’s benefit, even if additional planning becomes necessary in the future.
The Outcome
Arnold and Rose now have peace of mind knowing they have a solid plan in place that:
- Protects their home and other assets
- Ensures access to needed care
- Preserves their legacy for their children
- Provides flexibility for future planning
This case exemplifies how thoughtful legal planning can help families protect what matters most while preparing for future care needs. Through careful attention to detail and proactive planning, we helped Arnold and Rose achieve their goals of protecting their assets while ensuring access to necessary care benefits.
How We Can Help You
Every family has different needs. Let us show you how you can protect your assets, your future, and your legacy with a strategic approach to Medicaid planning.
