Medicaid Crisis Planning Attorney Serving Cook County & Lake County, Illinois

Seek Appropriate Counsel Before You Apply For Medicaid

Sudden Changes and Big Decisions

Life can change without warning. A sudden illness, serious accident, or unexpected need for nursing home care can leave you and your family facing difficult decisions about care and finances. At the Law Offices of Steven H. Peck, Ltd, we can help you understand your options for paying for long-term care, including whether a Medicaid asset protection trust in Illinois may be appropriate for your circumstances. Our goal is to help you explore available strategies and determine how Medicaid crisis planning may help address the costs of necessary care.

Experienced Medicaid Planning Guidance

Medicaid crisis planning requires careful attention to eligibility rules, asset transfers, and long-term care costs. We draw on decades of estate planning experience to help individuals and families evaluate their options when nursing home care becomes an immediate concern.

• Experienced Counsel: Steven H. Peck has more than three decades of experience helping individuals and families with estate and elder law matters.

• Medicaid Planning: We help clients understand how income, assets, transfers, and eligibility requirements can affect Medicaid planning.

• Crisis Planning: We address situations where long-term care is needed sooner than expected and planning decisions must be made quickly.

• Personalized Strategies: We consider your assets, family circumstances, and care needs when evaluating available planning options.

We focus on practical strategies that address your immediate care concerns while considering the long-term effect on your assets and family.

What Should I Know Before Creating A Medicaid Asset Protection Trust?

A Medicaid asset protection trust in Illinois can be one tool used in long-term care planning, but the timing and structure of the trust matter. Assets transferred to a trust may be subject to Medicaid rules, including restrictions that can affect eligibility if a transfer occurs during the applicable look-back period. We can review your circumstances and totalexplain how trust planning may affect your eligibility and ability to preserve assets allowed by lawwhile preparing for future care needs.

Long-term Care And Medicaid Asset Protection Trust In Illinois

Long-term care is expensive, and these costs only continue to increase as baby boomers age. Although the range varies depending on where you live, according to the Genworth Cost of Care Study for 2017, the national median annual cost of a private nursing home room is $97,455 with a 4% annual increase projected. With improved medical care, the average lifespan of adults also is increasing; this translates into more years of care at increasingly higher rates. Without some sort of financial assistance, these costs could be financially devastating. In fact, your entire life savings could be quickly depleted within a few years of needing long-term care. This is where Medicaid can help.

Medicaid is a joint federal and state program to assist those with low income and limited resources. While Medicare provides very limited long-term care coverage, Medicaid is much more extensive. However, because of its restrictions, qualifying for Medicaid can be extremely difficult. But paying for a nursing home without it could be all but impossible.

The Medicaid Maze

Although Medicaid requirements vary from state to state, they all share one common element: intricacy. Each state specifies a maximum allowed income for individuals and couples in order to qualify for Medicaid. Also, the applicant’s total assets cannot exceed a specified amount called the Individual Resource Allowance, which is consistently very low, often as low as $2,000*. Although certain possessions, like your home and automobile, are “exempted” for purposes of determining Medicaid eligibility, this figure is still alarming. If the applicant is married, the process becomes more complicated. For the recipient to qualify for Medicaid in any state, the applicant’s spouse can keep only half the couple’s assets up to a Maximum Community Spouse Resource Allowance of $123,600. So, if a couple has the maximum $123,600** in assets, they must “spend down” to all but $2,000 (or whatever the state Individual Resource Allowance is) for the applicant and $61,800 for the spouse – on long-term care.

What can you do if the value of your “non-exempt” assets exceeds the $123,600* Maximum Community Spouse Resource Allowance? If you give your extra assets away, which seems like an obvious choice, you will encounter greater problems. Violating this “Transfer Penalty Rule” could disqualify you from receiving Medicaid for months or years, depending on how much you gave away.

If your need for nursing home care is immediate, time is not something you can afford to lose. Why? If you wait too long and your non-exempt assets fall below the maximum $123,600 limit, then the applicant’s spouse can only keep half of what is left … with $24,720** as the Minimum Community Spouse Resource Allowance. In other words, $61,800** truly is the Maximum Community Spouse Resource Allowance!

The Medicaid Qualification Process = Legally Protecting the Maximum Amount the Law Allows.

This is only a brief and oversimplified review of a few Medicaid rules, of which there are myriad more. Managing them on your own could be a nightmare at best and subject you to penalties at worst. Fortunately, though, our experienced professionals can guide you through the Medicaid maze. We can advise you throughout the application process, ensuring that you retain the maximum income and total assets allowed by law.

Seek Appropriate Counsel First

Seek appropriate counsel before you apply for and seek to qualify for Medicaid. We can discuss whether a Medicaid asset protection trust in Illinois may be appropriate for your circumstances before you take steps that could affect eligibility. We can give you - and your family - peace of mind during a difficult and uncertain time. When dealing with Medicaid, legal advice is something you cannot afford to go without. Contact us today to discuss your options.

* The Individual Resource Amount varies from state to state.

** Since these amounts (e.g., the "Community Spouse Resource Allowance," etc.) are adjusted annually, these numbers may vary slightly depending on when the most recent figures are released.

Frequently Asked Questions

What should I do if I need nursing home care immediately?

We can review your financial and family circumstances and discuss Medicaid crisis planning options as quickly as possible. Acting promptly can help you understand your available choices before making financial decisions that could affect eligibility.

How can a Medicaid asset protection trust in Illinois help me protect my assets?

The right planning strategy depends on your assets, timing, and long-term care needs. A Medicaid asset protection trust in Illinois may allow certain assets to be structured for long-term protection, but the timing and terms of the trust are critical. We can review your circumstances and explain whether this type of planning may be appropriate for you.

Can I give my assets to my children to qualify for Medicaid?

We do not recommend transferring assets without first understanding the Medicaid rules. Certain transfers can result in a penalty period that delays eligibility, so we can review the proposed transfer and explain its potential consequences before you act.

What happens if I am already paying for nursing home care?

We can review your current expenses, assets, income, and care situation to determine whether Medicaid planning options may still be available. Crisis planning can sometimes address situations where long-term care has already begun.

Can my spouse keep assets while I qualify for Medicaid?

Yes, Medicaid rules provide protections for certain assets belonging to a spouse who remains in the community. We can evaluate your household's finances and explain which protections and planning options may apply to your situation.