Long-Term Care & Medicaid Planning

Last updated on March 3, 2025

We feel bulletproof when we are young. The thought that our body could fail us one day is hard to fathom, but time is one adversary that remains undefeated. As you approach your golden years, it is important to ensure you have a plan for protecting your assets in the event you require long-term care.

I can help you make sure you have a plan in place to protect your future, your access to long-term care, and the estate you have worked so hard to build. My estate planning and elder law practice is devoted to helping families, including those planning for the costs of long-term care.

Your Financial Success Is A Double-Edged Sword

Long-term care is expensive. It can quickly wipe out the savings of people who have otherwise lived a comfortable middle or upper-middle class lifestyle. Families with a loved one in long-term care often turn to Medicaid to cover the costs and avoid wiping out their assets. However, Medicaid is a means-tested program, and having too many assets can make a personal ineligible.

This financial Catch-22 is why it so important to have an experienced attorney help your family with Medicaid planning. Proper planning can ensure that your estate is set up in a way that maintains your Medicaid eligibility while protecting your assets. This can often be accomplished with the help of trusts and other estate planning methods that can be beneficial for reasons beyond Medicaid planning.

Long-Term Care Medicaid Planning FAQs

Here are commonly asked questions on long-term care Medicaid planning.

At what age should I begin long-term care Medicaid planning?

While there is no fixed age to begin planning for long-term care Medicaid, starting as early as possible, preferably in your 50s or 60s, is advisable. Medicaid has strict income and asset eligibility requirements, and early planning allows for legal and financial strategies that help protect assets while ensuring eligibility.

What is the look-back period for long-term care Medicaid in Florida?

Florida follows a five-year look-back period for long-term care Medicaid. This means that any asset transfers or gifts made within the five years before applying for Medicaid are reviewed.

If disqualifying transfers are found, Medicaid may impose a penalty period during which you are ineligible for benefits. Proper planning strategies, such as using irrevocable trusts or permitted exemptions, can help minimize penalties and preserve assets.

Can I transfer my assets to my children before applying for long-term care Medicaid?

Simply transferring assets to your children before applying for Medicaid can lead to disqualification due to the five-year look-back period.

Any nonexempt transfers made during this period can result in a penalty, delaying eligibility for Medicaid benefits. However, certain transfers may be exempt, such as those to a spouse, a disabled child or a trust for the benefit of a disabled individual. Working with an attorney can help structure asset protection strategies that comply with Medicaid rules.

Will my spouse be affected by my eligibility for long-term care Medicaid?

Yes, your spouse’s financial situation is considered when determining Medicaid eligibility. However, Florida follows Medicaid’s “spousal impoverishment” rules, which protect a portion of the couple’s assets for the healthy spouse (community spouse).

The community spouse is allowed to retain a certain amount of assets and income, known as the Community Spouse Resource Allowance (CSRA) and the Minimum Monthly Maintenance Needs Allowance (MMMNA).

These rules help ensure the nonapplicant spouse does not face financial hardship. Proper planning can help maximize asset and income protection for the community spouse while allowing the applicant to qualify for Medicaid.

Let Me Know If You Are Ready To Get Started

I look forward to helping you make sense of your Medicaid planning options. Schedule a consultation at my firm in Lake Mary by calling 407-536-6901.