Medicaid Planning
Last updated on February 19, 2026
**Attention**
As of October 1, 2020, new applicants for Home Care Benefits from Medicaid in New York City will be subject to a financial look-back period of 2.5 years during submission. However, this new rule has not yet been implemented and is unlikely to be implemented until late 2026 or 2027. Applicants before this time will be exempt from the look-back.
Brooklyn Medicaid Planning/Asset Protection Attorney
Residents of Brooklyn, Queens, the Bronx, Manhattan and Long Island who want information about how to protect assets when preparing to use Medicaid assistance for nursing home or other elderly related financing have a valuable resource in the lawyers at The Law Offices of Polizzotto & Polizzotto, LLC.
You want to pass as much of your estate as possible onto your children and spouse. We can help you preserve much of your estate and properly plan to qualify for Medicaid assistance when the time comes. However, it is essential to plan ahead. Contact our Brooklyn Medicaid planning attorney for a confidential consultation and advice on how to properly plan for old age, sickness or disability.
We can help you understand how to legally transfer your assets to preserve your hard-earned property for future generations of your family, regardless of your state of health.
Medicaid Changes In The Deficit Reduction Act Of 2005
In February 2006, the Deficit Reduction Act of 2005 was signed into law by President Bush. The DRA affects your ability to obtain Medicaid benefits and protect your assets. Now more than ever, prudent planning is a necessity to preserve the greatest amount of your estate for your family and provide the nursing home care you may require.
Lengthening The Look-Back Period
The Deficit Reduction Act lengthens the look-back period to five years from three years.
Change In Beginning Date Of Period Of Ineligibility
Previously, a penalty period for institutional (nursing home) care began the month after a transfer was made. The DRA changed this, so the penalty does not begin to run until a person is institutionalized and otherwise eligible for Medicaid (by exhausting other funds). This means any transfer in the past five years would disqualify for a period of time for nursing home care.
There are still transfer exemptions and hardship provisions.
Annuities
To not be counted as a resource, annuities must be irrevocable and nonassignable, be actuarially sound, and have equal payments with no deferral or balloon payments. The state would have to be named as a remainder beneficiary, although it could be secondary after a spouse or a minor or disabled child.
Home Equity
Equity in a home would count as a resource if is over $858,000 (2018 limit). An individual could take a reverse mortgage or home equity loan to reduce the total equity.
Loans
For a loan or mortgage not to be treated as a transfer of assets, the repayment must be actuarially sound, and it cannot be canceled upon death of the lender.
Qualify For Medicaid Assistance
Many people misconstrue what the law is in the area of the transfer of assets for the sake of qualifying for Medicaid assistance legally and in a timely manner. They may have heard about a five-year period that prevents them from safeguarding property when a health crisis comes without ample warning. However, we can explain to our clients the “rule of halves” that can save their families thousands of dollars even if there was no planning done prior to the need for care.
We can explain the workings of interspousal transfers, which exemptions apply and how to put money in a place where it does not interfere with your eligibility for Medicaid, yet allows you financial flexibility.
We can explain how to cope with income limits that apply to Medicaid through pooled income trusts.
The law firm of The Law Offices of Polizzotto & Polizzotto, LLC, is eager to share this and other valuable information about how to best prepare those who need Medicaid assistance, yet have assets to protect for their families.
Please contact our asset protection lawyers for a consultation, in person or by phone, about how your family can best prepare for Medicaid eligibility. In this area of law, we charge a reasonable fee for the initial visit. We are confident it will be the most valuable money you ever spend.
Medicaid Frequently Asked Questions
What Is Medicaid?
The purpose of Medicaid is to assist individuals with medical costs who may have limited income or resources. Funding for Medicaid comes from both the state and the federal government. Managing Medicaid is a responsibility of every state. Each state has broad discretion in deciding who is eligible for Medicaid benefits.
In New York, Medicaid recipients must be U.S. citizens or legal immigrants with over five years of residency in the U.S. Recipients must also be current residents of our state.
When Can I Start Setting Up Medicaid?
Medicaid is available for individuals of all ages who meet the requirements. You don’t have to wait for a specific age to apply for benefits.
Can I Still Collect From Medicaid While Taking Steps To Take Care Of My Future Beneficiaries?
If someone has assets that you want to protect, access to Medicaid can be helpful. Under the right circumstances, an individual can shelter assets in a trust for your beneficiaries while you access Medicaid benefits to help pay for your daily expenses.
You will need to take such steps with care. If the authorities suspect that you still have access to finances while still trying to collect Medicaid, you could face charges of Medicaid fraud. It might be necessary to have the services of a knowledgeable Medicaid and elder law attorney to conduct Medicaid planning properly.
Is There A Time Limit To Set Up Medicaid For Someone?
It’s never too late to implement Medicaid. What is important is to have a plan in place to qualify for Medicaid. Due to recent legislation, qualifying for Medicaid benefits is not automatic. Earlier and better planning increases the chances of receiving the benefits you need and deserve.
I’m Told I Have To Wait Five Years To Protect Anything When Setting Up Medicaid.
Social services will have the ability to look back at our financial transactions and investigate any activity going back five years before applying for coverage. The purpose of such an investigation is to ensure that you did not transfer any assets for less than they are worth within this five-year period. Disposal of such assets in this manner can lead to the imposition of penalties and possible ineligibility for Medicaid coverage.
There are multiple options to help reduce to this wait time, however. Depending upon your circumstances and with the right planning, there may be no wait time at all. For example, you may be able to protect assets through the use of a pooled income trust.
However, it is important to be careful when transferring assets or property. Such transfers will be closely scrutinized. And you will wish to have still enough assets that you retain ownership in to pay for your needs while the five-year look-back period is in place. Because there are several requirements regarding the protection of assets, it is extremely helpful to speak to an elder law lawyer who can advise you regarding your various options.
Are There Other Alternatives To Long-Term Care Other Than Medicaid?
Sometimes you can use your life insurance to help pay your bills if you get sick before you pass away. At one point, receiving life insurance proceeds could disqualify you from receiving Medicaid benefits. However, because of recent changes to the law, that is no longer necessarily the case. Nevertheless, there are certain steps you will need to take in spending down the amount of cash value you have in a life insurance policy to comply with Medicaid rules.
It may be possible to protect these proceeds by setting up an irrevocable life insurance trust. This is complicated. It is important to speak to an attorney who understands these instruments, and who understands tax compliance requirements and the laws for eligibility regarding such a trust.
Can I Set Up Medicaid For Someone I’m Not Married To Or Related To By Blood?
Yes, you can set up Medicaid for just about anyone. Pending the relationship, there are several available options. For spouses, terms likely will be more flexible than with other relations.