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

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Medicaid » Florence Medicaid Lawyer Explains Medicaid Look-Back

Florence Medicaid Lawyer Explains Medicaid Look-Back

April 9, 2018 by John Potter

Florence Medicaid lawyersWhen it comes to Medicaid eligibility, there are limitations on financial resources, as well as how and when you can transfer assets out of your estate. Long-term care costs are exorbitant, and they are going up all the time. At present, the national average charge for a year in a nursing home is more than $90,000, so the thought of ever-increasing costs is not a very pleasant one if you are looking toward the future. For this, and many other reasons, Medicaid planning is very important.  Let our Florence Medicaid lawyer explain the five-year Medicaid look-back period and how it will affect your Medicaid planning.

How Medicaid determines countable assets and resource allowances

There is a $2000 limit on countable assets for an individual, but some things are not countable, including your home (with an equity limit of $552,000). Plus, if you are married and you apply for Medicaid while your spouse is still capable of independent living, your spouse could keep half of the assets that are considered to be countable (up to a certain limit). This is called the Community Spouse Resource Allowance.

You cannot overlook the future costs of health care

When you have health insurance all of your life, you become accustomed to the fact that huge medical expenses will be significantly defrayed by your health insurance coverage. The out-of-pocket costs are there, but they are often minimal.

Unfortunately, this mentality does not apply to long-term care for seniors who will be relying on Medicare for health insurance. This program does not pay for custodial care. This is the type of care that you would receive long term in a nursing home or assisted living community.

The Medicaid Look-Back Period

The Medicaid program is the solution for most elders who require living assistance. This need-based government health insurance program does pay for custodial care. However, since it is a need-based program, there is a $2000 limit on countable assets.

Some people think they will just give all their assets to their children to qualify, but there is a five-year Medicaid look-back. Your eligibility may be delayed if you give away assets within five years of submitting your application. For example, if you give away enough pay for 18 months of nursing home care, your eligibility could be delayed by 18 months. You would be forced to pay out-of-pocket during this interim.

Let our Florence Medicaid lawyer help you find an exception

However, there are a few exceptions to the Medicaid look-back rule. For example, if you have an adult child who has been living in your home with you providing the care that you need for at least two years before you apply for Medicaid to pay for a nursing home, you could give the child the home without violating the five-year look-back.

The fact that your caregiver-child could assume ownership of your home without violating the look-back is good, but it can create other problems — comprehensive advance planning is the best way to proceed if you want to qualify for Medicaid at the ideal time. If you take the right steps, you can preserve a maximum store of resources for your loved ones to draw from after you are gone.

 Florence Medicaid lawyer suggests using Medicaid trusts

Though assets that have been conveyed into a living trust would be countable for Medicaid purposes, there is another type of trust that you could utilize if you want to get assets out of your own name. In addition to revocable trusts, there are also irrevocable trusts that you cannot rescind or dissolve. Assets that have been conveyed into an irrevocable Medicaid trust would not be countable.

Plus, if you have income producing assets, you could create an income only Medicaid trust. The principal would not be counted, but you could continue to receive income from the earnings of the trust before you apply for Medicaid. However, that income may be absorbed by the program if you do eventually qualify for Medicaid to pay for living assistance.

Join us for a free seminar today! If you have questions regarding Medicaid eligibility or any other Medicaid planning matters, please contact the experienced attorneys at The Potter Law Firm for a consultation. You can contact us either online or by calling us at (859) 372-6655 (Florence, KY) or (606) 324-5516 (Ashland, KY), or for individuals in North Carolina, (704) 944-3245 (Charlotte, NC and Huntersville, NC). We are here to help!

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Medicaid

Other Articles You May Find Useful

Huntersville Medicaid planning attorney
What You Need to Know about the Medicaid Look-Back Rule
Charlotte Medicaid planning
Charlotte Medicaid Planning to Protect Eligibility
Charlotte Medicaid attorneys
Charlotte Medicaid Attorneys Explain How to Protect Healthy Spouses
Ashland Medicaid lawyers
What Assets Can You Have and Still Qualify for Medicaid?
Florence Medicaid attorneys
How Ethical is Medicaid Planning?
Huntersville Medicaid planning
Medicaid Waivers and Huntersville Medicaid Planning

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.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

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

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this 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. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT