Medicaid Planning Lawyer for Asset Protect from Indiana Nursing Homes

Indiana Medicaid is a needs-based healthcare program that covers the cost of long-term care for Indiana seniors and disabled individuals meeting the eligibility requirements. In 2022, a single applicant can have no more than $2,000 in assets and $2,523 in monthly income to qualify; however, many assets do not count toward the limit. For example, exemptions include personal belongings, household furnishings, an automobile, irrevocable burial trusts, and generally one’s primary home (excludes primary residences with home equity interests of up to $636,000).

When an individual applies for Medicaid, only the income of the applicant is considered, meaning that the income of the non-applicant spouse is disregarded. As such, certain income can be transferred to a non-applicant spouse to decrease the applicant spouse’s monthly income. 

A non-applicant spouse may be entitled to a Minimum Monthly Maintenance Needs Allowance (MMMNA) to ensure the individual has sufficient financial means from which to live. If a non-applicant spouse’s income is below $2,288.75 per month, income can be transferred from the other spouse to bring their monthly income up to this level. Further, if housing and utility costs exceed $686.63 per month, it may be possible to increase the spousal income allowance even further. 

If you are interested in exploring an MMMNA, we encourage you to call our office to schedule a free initial consultation with a New Albany long-term care and Medicaid planning attorney.

Indiana Medicaid and Veterans benefits are challenging, and mishandled applications can easily result in the continued erosion of assets. For this reason, it is critical to consult with a New Albany Medicaid planning attorney who is experienced in creating pragmatic estate plans designed to preserve assets without affecting benefit eligibility as soon as possible. 

At Plitz Estate Planning, we can help navigate every step of the Medicaid application process, addressing critical issues ahead of time so you and your family can avoid pitfalls down the road when it is time to apply for benefits. With over a decade of experience, I can evaluate your circumstances, answer your questions, and provide guidance on what can be done to help you (or a loved one qualify for Medicaid nursing home benefits while protecting assets for your spouse and children.

It is critical to engage in methodical estate planning well in advance of when long-term care may be needed – typically at least five years in advance – as Medicaid law may count certain assets toward eligibility limits if they are recently transferred. 

To prevent seniors from giving away assets to qualify for Medicaid, the government implemented a look-back period of five years. When an individual submits an application for nursing home Medicaid benefits, the government will review all financial transactions within this period to determine if any transfers were made that violate its eligibility policies. Specifically, a Medicaid applicant can be penalized if assets were transferred, gifted, or sold for less than the fair market value. If a transaction is found to be in violation of the rules, the applicant can be made ineligible for Medicaid for a penalty period, meaning that they will not be able to receive long-term care paid by Medicaid for several months or even years.

Talking to an experienced New Albany Medicaid planning lawyer can help you or a loved one navigate the look-back period, potentially preparing you for Medicaid eligibility.