Estate Planning | Making a Difference One Family at a Time

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Medicaid planningAdvancements in healthcare and living standards have led to increased life expectancy in the United States. As of 2025, the average life expectancy is approximately 79 years, with men expected to live around 76 years and women about 81 years.

This includes people who pass away at all ages, even children and young adults. If you look at the figures for someone who has already reached the age of 65, they are considerably higher.

On the one hand, this is a good thing, but there is an elder law reality. As you reach an advanced age, it becomes more and more likely that you will need living assistance.

Financial Implications of Nursing Home Care

The cost of nursing home care has been on the rise, placing a significant financial burden on individuals and families.

We have offices in Westport and Glastonbury, CT. According to Genworth Financial, the median annual charge for a private room in a Westport nursing home is $231,000. One year is the average length of stay, and a married couple may face two sets of nursing home bills.

Limitations of Medicare Coverage

A common misconception is that Medicare covers long-term custodial care. In reality, Medicare primarily covers short-term, medically necessary care, such as rehabilitation services following hospitalization.

It does not cover custodial care, which includes assistance with activities of daily living like bathing, dressing, and eating. This gap in coverage often leaves individuals unprepared for the high costs of long-term care.​

Medicaid: A Viable Solution for Long-Term Care

Medicaid serves as a safety net for those needing long-term care, covering costs that Medicare does not. However, Medicaid eligibility is means-tested, requiring applicants to have limited income and assets.  In Connecticut, the limit on countable assets is just $1,600.

Exempt Assets and the Home

Certain assets are exempt from Medicaid’s asset calculation. Notably, a primary residence is exempt up to a specific equity value ($1.097 million in Connecticut in 2025).

However, while the home may be exempt during the owner’s lifetime, Medicaid’s estate recovery program can seek reimbursement from the sale of the home after the beneficiary’s death.

This means that without proper Medicaid planning, the home intended for heirs could be claimed to cover Medicaid expenses.​

The Importance of Medicaid Planning

To protect assets and ensure eligibility for Medicaid, proactive planning is essential. One effective strategy is establishing an irrevocable Medicaid trust.

By transferring assets into this type of trust, individuals can remove them from their countable assets, potentially qualifying for Medicaid while preserving wealth for their heirs.

However, it’s crucial to note that Medicaid has a five-year look-back period. Any transfers made within five years of applying for Medicaid can result in penalties, delaying eligibility. Therefore, initiating Medicaid planning well in advance of needing care is necessary.

Home and Community-Based Services Waivers

For those who prefer to receive care at home rather than in a nursing facility, Medicaid offers a Home and Community-Based Services (HCBS) waiver. The waiver will cover in-home custodial care, but you still have to satisfy the eligibility requirements.

We Are Here to Help!

Our firm can help you prepare for long-term care costs as part of your broader legacy plan. To schedule a consultation at our Westport or Glastonbury, CT elder law offices, call us at 860-548-1000 or send us a message through our contact page.

John McCann, Estate Planning Attorney
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