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Medicaid Planning

Medicaid planning is discussed in more detail in subsequent chapters. Planning is the process of restructuring an estate in a legal manner to accelerate Medicaid eligibility. Often, the purpose is to protect the Community Spouse or a disabled child, but it can be done to protect a family inheritance as long as you follow the rules; however, failure to follow the rules is Medicaid fraud unless it is fully disclosed. When planning is done correctly, it has the effect of shifting the cost of nursing home care to someone else (e.g., the Medicaid program or long-term care insurance) before assets are depleted. The net result, if done with the Elder’s best interests in mind, will be a Medicaid-plus package. Medicaid will pay first dollars and assets that are preserved will be used to pay for care not otherwise provided by Medicaid.

Medicaid Planning is a process. It begins by gathering information about the applicant and the applicant’s income and resources (and, where applicable, those of the Community Spouse). That information is used to analyze options and develop strategies for achieving eligibility within the framework of the program rules. As with a recent tax case, although a federal-State set of rules govrn eligibility, “state law determines the property interests “of applicants. See Drombrowski v. USA (E.D. Mich. 5/18/2022, at PDF p. 6)

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