Medicaid Planning Attorneys in New Jersey and New York
Medicaid planning helps families prepare for the cost of long-term care and understand the financial requirements for benefits. Milvidskiy Law Group P.C. reviews income, assets, and care needs, recommends available planning options, and assists with the application process in New Jersey and New York.
Understanding Medicaid Planning
Planning begins with the eligibility rules for the state and program where care will be received. In 2026 a single applicant may keep $2,000 in countable resources in New Jersey and $33,038 in New York, the home is exempt up to $1,130,000 of equity unless a spouse or a dependent child lives in it, and transfers made in the sixty months before a nursing home application create a penalty period calculated at $420.67 a day in New Jersey and $15,024 a month in New York’s Northern Metropolitan region. We explain how these requirements apply to your circumstances before recommending transfers or other changes.
Tools and Strategies for Medicaid Eligibility
A review of your finances and care needs helps identify which of the following options may be appropriate:
Asset Protection Trusts
By transferring assets into a trust, you can safeguard them from Medicaid eligibility limits, preserving them for future generations.
Income Trusts (Miller Trusts)
For New Jersey applicants whose income exceeds the Medicaid limit of $2,982 a month in 2026, a Miller Trust can redirect excess income to qualify for Medicaid benefits.
Gifting and Transfers
Strategic gifting and asset transfers must be carefully planned to avoid penalties, respecting Medicaid’s sixty-month look-back period for eligibility.
Spousal Impoverishment Protections
We use spousal impoverishment rules to protect the non-applicant spouse’s income and assets, aiding the other spouse’s Medicaid qualification. In 2026 the spouse at home may keep between $32,532 and $162,660 of the couple’s resources in New Jersey and between $74,820 and $162,660 in New York, plus a monthly income allowance.
Personal Care Agreements (Caregiver Agreements)
These agreements formalize caregiving arrangements, allowing for compensation that aids in Medicaid eligibility.
Promissory Notes
In New York, a promissory note can be an effective tool in Medicaid planning, converting assets into a stream of income that can help meet Medicaid’s income and asset criteria. This strategy must be used carefully to comply with Medicaid regulations.
Medicaid Compliant Annuities
In New Jersey, these annuities are specially designed to convert otherwise countable assets into income, helping to achieve Medicaid eligibility without sacrificing all of your resources. They must be structured to comply with Medicaid’s strict guidelines to avoid penalties.
Our Medicaid Planning Services
We assist families planning ahead and those facing an immediate need for care. Our work includes reviewing eligibility, comparing available strategies, preparing the necessary documents, and coordinating the application. We explain the expected timing, required records, and responsibilities at each stage.
Medicaid Planning Tools and Services
Depending on the care setting and family circumstances, planning may involve Community Medicaid and home care, spousal refusal in New York, or the caregiver child exemption. We also assist with Medicaid fair hearings and appeals and coordinate benefits planning with dementia and Alzheimer’s planning.
Contact Us
Contact Milvidskiy Law Group P.C. to discuss care needs, Medicaid eligibility, and the options available to you or your loved one in New Jersey or New York.
Frequently Asked Questions
What is Medicaid planning for long-term care?
Medicaid planning refers to the legal strategies and financial planning used to qualify for Medicaid coverage for long-term care (LTC) without depleting all of your assets. This includes understanding eligibility requirements, such as income and asset limits, and employing tactics to protect your wealth while ensuring you or your loved ones receive the necessary care.
What is the Medicaid look-back period and how does it affect eligibility?
The Medicaid look-back period is the sixty months (five years) before the application date during which all asset transfers are scrutinized by Medicaid. Any assets transferred for less than fair market value during this period may result in a penalty period, delaying eligibility for Medicaid long-term care benefits. Medicaid planning attorneys can help navigate the look-back period, advising on legal and safe strategies to manage assets without incurring penalties.
What is a Medicaid penalty period?
A Medicaid penalty period is a length of time during which an individual is ineligible for Medicaid long-term care benefits due to transferring assets for less than fair market value within the look-back period. The duration of the penalty period is the value of the transferred assets divided by the state’s average cost of care: $420.67 a day in New Jersey from April 1, 2026, and $15,024 a month in New York’s Northern Metropolitan region or $15,282 a month in New York City in 2026. Working with a Medicaid planning attorney can help minimize the risk of a penalty period by ensuring all asset transfers are done in compliance with Medicaid regulations.
Can I protect my home from being considered for Medicaid eligibility?
There are several strategies to protect your home from being counted as an asset for Medicaid eligibility. These may include certain types of trusts or transfers to a spouse or caretaker child. The home is exempt while the applicant or a spouse lives in it, up to $1,130,000 of equity in New York and New Jersey in 2026 unless a spouse or a dependent child lives there. These strategies must be carefully planned to avoid penalties under Medicaid’s look-back rules. Medicaid planning attorneys can provide guidance on how to protect your home while maintaining eligibility for Medicaid.
What are the asset limits for Medicaid LTC eligibility?
Income and asset limits for Medicaid LTC eligibility vary by state and marital status. For 2026, a single individual applying for Medicaid long-term care in New Jersey may keep up to $2,000 in countable assets, while in New York the limit is $33,038 for an individual and $44,796 for a couple. These limits are adjusted periodically, and there are exemptions (and deductions) that can affect eligibility. Medicaid planning attorneys can help individuals understand these limits and strategically plan their finances.
How do the rules for Medicaid eligibility differ between New Jersey and New York?
While both New Jersey and New York follow federal guidelines for Medicaid eligibility, each state has its own specific rules and programs for long-term care. Differences include the resource limits ($2,000 in New Jersey and $33,038 in New York for an individual in 2026), the treatment of income above the limit, available exemptions, and specific long-term care programs offered. For instance, New York offers a wider range of community-based long-term care options under its Medicaid program than New Jersey, and New York recognizes spousal refusal while New Jersey does not. Consulting with a Medicaid planning attorney familiar with the specific state’s regulations is crucial for proper planning.
What exemptions and spend-down strategies can be used for Medicaid eligibility?
Certain assets are exempt from being counted towards Medicaid eligibility, such as a primary residence (under certain conditions), personal belongings, and one vehicle. Spend-down strategies involve legally reducing countable assets through paying off debts, medical expenses, or purchasing exempt assets. These strategies must be carefully executed to avoid penalties. Medicaid planning attorneys can advise on which exemptions apply and how to implement spend-down strategies effectively.
What types of long-term care does Medicaid cover?
Medicaid covers various types of long-term care, including nursing home care, home health care, personal care services, and community-based services in some states. The coverage for these services can vary significantly from state to state, so it’s important to understand the specific benefits available in your state. Medicaid planning attorneys can help identify the types of services you may be eligible for and assist in the application process.
What is Medicaid Estate Recovery, and how can it affect my estate?
Medicaid Estate Recovery is a process by which the state seeks reimbursement for the cost of care provided through Medicaid, from the estate of a deceased Medicaid recipient. This can affect your estate by reducing the inheritance you can leave to your heirs, as assets may need to be sold to repay Medicaid.
There are legal strategies to protect assets from Medicaid Estate Recovery, such as setting up certain types of trusts or transferring assets during your lifetime, while complying with Medicaid rules and the sixty-month look-back period. Consulting with a Medicaid planning attorney is essential to navigate these options effectively.
What is a Miller Trust also known as a Qualified Income Trust (QIT) in New Jersey, and how can it help me qualify for Medicaid?
A Qualified Income Trust (QIT), also known as a Miller Trust, allows New Jersey applicants whose income exceeds the Medicaid limit of $2,982 a month in 2026 to qualify for Medicaid by placing excess income into the trust. This income can then be used to pay for care-related expenses, enabling eligibility for Medicaid assistance.
How does a Pooled Income Trust work in New York to help with Medicaid eligibility?
A Pooled Income Trust operates similarly to a QIT but is managed by a nonprofit organization. It allows New York community Medicaid recipients with incomes over the limit of $1,836 a month for an individual in 2026 to deposit their excess income into the trust, which can then be used for their benefit, such as paying for care expenses, while still qualifying for Medicaid.
When is the best time to start planning for Medicaid Long-Term Care (LTC)?
The best time to start planning is at least five years before you anticipate needing long-term care because transfers within the Medicaid look-back period can affect eligibility. Early planning provides more options for protecting assets. If care is needed sooner, an attorney can review the strategies still available.
Do I need Medicaid planning if I already have Long-Term Care (LTC) insurance?
Medicaid planning may complement long-term care insurance when the policy limits the duration or amount of coverage. A review can identify potential gaps and address Medicaid as a possible source of support once insurance benefits are exhausted or no longer cover the full cost of care.
How can Medicaid planning attorneys assist with the application process and asset protection?
Medicaid planning attorneys focus on the complex regulations surrounding Medicaid eligibility and can provide valuable assistance in navigating the application process, protecting assets, and planning for long-term care. They can help develop strategies to meet eligibility requirements while preserving wealth, advise on the implications of the look-back period, assist with the spend-down process, and ensure that all paperwork and documentation are correctly prepared and submitted. Their experience can be crucial in securing Medicaid eligibility and maximizing the protection of assets.
