Most people worry that they’ll have to drain their savings or give up their home before qualifying for long-term care assistance. It’s a valid concern, especially in New Jersey, where the cost of nursing homes and other care options can quickly add up. But with the right planning, it’s entirely possible to protect your assets and still qualify for Medicaid. At E.A. Goodman Law, LLC, we help individuals and families do just that.
Understanding Medicaid Eligibility Rules in New Jersey
Medicaid is a government program that helps pay for long-term care, but it’s only available to those who meet strict financial requirements. In New Jersey, Medicaid looks at both income and assets when determining eligibility.
Some assets are counted. Others are not.
- Countable assets include bank accounts, investments, and extra properties.
- Non-countable assets may include your primary residence, one car, and personal belongings, depending on your circumstances.
There’s also a five-year “look-back” period. That means Medicaid will review your financial transactions from the past five years to check for any gifts or transfers made below fair market value. If they find any, it could result in a penalty period, delaying your coverage.
Even with these rules, you don’t have to spend everything to get care. You just need a plan.
Common Strategies for Protecting Assets
At our firm, we work with families to create legal strategies that comply with Medicaid’s rules while preserving as much as possible. Here are some of the tools we may use:
- Irrevocable Medicaid Asset Protection Trusts (MAPTs): These allow you to transfer certain assets into a trust, removing them from your countable estate over time.
- Spousal protections: If one spouse needs care and the other does not, the healthy spouse (called the “community spouse”) may be allowed to keep a significant portion of the couple’s assets.
- Annuities and promissory notes: These can convert assets into a stream of income, which is treated differently under Medicaid rules.
- Exempt transfers: In some cases, you can transfer a home or other assets to a disabled child or a caregiver child without penalty.
These strategies must be structured properly to hold up under Medicaid review. That’s why planning ahead matters.
What About Your Home?
Many people ask us whether they’ll lose their homes if they apply for Medicaid. The good news is that, in certain situations, your primary residence may not count against you.
For example:
- If your spouse still lives in the home, it is exempt from Medicaid’s asset calculation.
- If you intend to return home, it may be considered non-countable up to a specific equity limit.
That said, Medicaid may try to recover its costs from your estate after you pass away. Without the right protections in place, your home could be at risk later on. Fortunately, there are legal ways to shield it, depending on your goals and your timing.
Why Planning Ahead Makes a Big Difference
There’s a lot more flexibility when you plan before there’s an urgent need for care. With time on your side, we can explore more options to protect your home, savings, and personal legacy. However, even if you or a loved one is already in a facility or about to enter one, it’s not too late to act.
In what’s called “crisis planning,” we may still be able to protect a portion of your assets through last-minute strategies. These cases require careful attention and prompt action, but we’ve helped many families avoid spending everything before qualifying for help.
No matter where you are in the process, you’re not alone. We’ll help you make sense of your options and put a plan in place that works for you.
How We Help You Protect What Matters
At E.A. Goodman Law, we’ve worked with New Jersey families for years to develop sound Medicaid and long-term care plans. We understand how stressful this topic can be, especially when care decisions are already looming.
Our approach is personal. We take the time to understand your family structure, your assets, and your long-term goals. Then we recommend a strategy that fits—not a one-size-fits-all solution, but something that makes sense for your specific situation.
Whether you’re planning years in advance or facing a health crisis today, we’ll walk you through the steps, answer your questions, and help you protect what matters most.
Let’s Talk About the Future
You don’t have to choose between protecting your legacy and getting the care you need. With the right support, you can do both. Contact E.A. Goodman Law today to schedule a consultation and take the first step toward peace of mind.
Posted in: Medicaid Planning