• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Nirenstein, Horowitz & Associates P.C.

Estate Planning | Making a Difference One Family at a Time

An Estate Planning Law Firm
Making a Difference One Family at a Time

Call Now: (860) 548-1000

Attend a Complimentary Seminar
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • RSS
  • Twitter
  • YouTube
  • Home
  • Our Firm
    • About Our Firm
    • Careers
    • Client Testimonials
    • Meet Our Team
  • Services
    • Asset Protection & Business Planning
    • Estate And Gift Tax Figures
    • Estate Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Pet Planning
    • Powers of Attorney
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
  • Elder Law
    • Alzheimer’s Disease
    • Caregiver Information
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
  • Resources
    • Complimentary Estate Planning Worksheet
    • Complimentary Medicaid/Long-Term Care Calculator
    • DocuBank
    • Elder Law Resources
      • Glastonbury Elder Law Resources
    • Estate Planning Articles
    • Estate Planning Checkup
    • Estate Planning Definitions
    • Estate Planning Presentations
    • Estate Planning Seminars
    • Estate Planning Techniques
    • Frequently Asked Questions
      • Asset Protection and Business Planning
      • Elder Law & Medicaid
      • Estate Administration
      • Estate and Gift Tax
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • In-Home Elder Care
      • Irrevocable Trusts
      • LGBTQ Estate Planning
      • Living Trust
      • Medicaid Planning
      • Nursing Home Asset Protection FAQs
      • Probate
      • Probate Avoidance
      • SECURE Act 2.0
      • Trust Administration
      • Wills
    • Newsletters
    • Probate Resources
      • Probate Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Seminars
  • Communities We Serve
    • Fairfield County
      • Darien
      • Fairfield
      • Stamford
    • Hartford County
      • Avon
      • Hartford
      • Simsbury
      • West Hartford
    • Litchfield County
      • Watertown
    • Middlesex County
      • Middletown
      • Old Saybrook
    • New Haven County
      • Middlebury
      • New Haven
    • New London County
      • Groton
      • Old Lyme
      • Stonington
    • Tolland County
      • Mansfield
    • Windham County
      • Woodstock
  • REVIEW US
  • Blog
  • Contact Us
Home » Medicaid Asset in Connecticut » Be Careful When Transferring Assets In Case You Need to Qualify for Medicaid in the Future

Be Careful When Transferring Assets In Case You Need to Qualify for Medicaid in the Future

November 29, 2018 by Barry D. Horowitz, Estate Planning Attorney

Hartford Medicaid planningSome people choose to wait until after they are gone to pass down assets to children and other loved ones. Others, however, prefer to engage in lifetime gifting and pass down assets long before the end of their life. Lifetime gifting can actually provide some beneficial tax advantages as well as allowing you to observe your beneficiaries enjoyment of the assets you gift. Transferring assets can also result in unwanted consequences as well though, particularly if you later find yourself in a position where you need to qualify for Medicaid. The Hartford Medicaid planning attorneys at Nirenstein, Horowitz & Associates, P.C. explain why you need to be careful about transferring assets as a senior because it may impact your Medicaid eligibility.

The Cost of Long-Term Care

At the time you enter your “Golden Years” (age 65), you stand a 50 percent chance of needing long-term care (LTC) at some point before the end of your life. If you are married, keep in mind that your spouse faces the same odds as you. The longer you both live, the stronger the likelihood that one of you will eventually need LTC. If you are fortunate enough to still be here at age 85, your chances of needing LTC will have increased to 75 percent. Nationwide, the average cost of a room in LTC was almost $90,000 per year in 2018. LTC costs in Connecticut, however, are among the highest in the country with an average annual cost of just over $160,000. With the average time in LTC running about three years, your LTC bill could approach half a million dollars. Making matters worse is the fact that most health insurance plans will not cover LTC expenses nor will Medicare. Consequently, over half of all seniors currently in LTC rely on Medicaid to help with the high cost of that care.

Understanding Medicaid Eligibility

Understandably, seniors who never before relied on Medicaid know very little about the eligibility guidelines for the program. To qualify for Medicaid benefits, you will need to meet Medicaid’s eligibility requirements for seniors, meaning you must meet the income and asset tests. The income limit is tied to the Federal Poverty Level and will change depending on which Medicaid category you apply under, your geographic location, and household size. The income limit is not where most seniors encounter a problem though. It is the extremely low asset limit that typically poses a problem for seniors who did not plan ahead. In most states, an individual applicant cannot own “countable resources” valued at over $2,000. A married couple faces an asset limit of just $3,000. Medicaid does exempt certain assets, such as your primary residence and a vehicle; however, many seniors have accumulated a retirement nest egg full of non-exempt assets that easily exceed the countable resources limit. If your assets exceed the limit, your application will be denied and you will have to “spend-down” your assets before applying again, meaning you will be expected to use those assets to cover your LTC expenses until the assets are gone.

Transferring Assets and the Medicaid Look-Back Rule

If you are among the many people who enjoy gifting assets while you are alive instead of waiting until you are gone, those well-intentioned gifts could provide a problem if you end up needing to qualify for Medicaid. Because applicants were frequently engaging in last-minute assets transfers in order to qualify under Medicaid’s countable resources limit, Medicaid instituted a “look-back” period to prevent such transfers. If you apply for Medicaid, your finances will be subject to scrutiny for the 60 month period prior to the date of your application. Any asset transfers completed during that time period for less than fair market value could trigger waiting period. The length of the waiting period is calculated by dividing the value of your excess assets by the average monthly cost of LTC in your area. By way of illustration, imagine that you own assets that exceed the countable resources limit by $200,000. The average monthly cost of LTC in Hartford, Connecticut for 2018 is $13,840. Dividing $200,000 by $13,840 you get 14.45, meaning you would incur a 15 month (rounding up) waiting period before Medicaid would start helping you pay your LTC expenses. During the waiting period, you would be responsible for paying your LTC costs. It becomes easy to imagine how a healthy retirement nest egg could be depleted as a result of those asset transfers that triggered the waiting period. The key to protecting your assets and ensuring that you qualify for Medicaid if you need it is to incorporate Medicaid planning into your comprehensive estate plan long before you are likely to need long-term care.

Contact Hartford Medicaid Planning Lawyers

To learn more, please join us for an upcoming FREE estate planning seminar. If you have additional questions or concerns about asset transfers or Medicaid planning, contact the experienced Hartford Medicaid planning lawyers at Nirenstein, Horowitz & Associates, P.C. by calling (860) 548-1000 to schedule an appointment.

  • Author
  • Recent Posts
Barry D. Horowitz, Estate Planning Attorney
Barry D. Horowitz, Estate Planning Attorney
Founding Partner and President at Nirenstein, Horowitz & Associates PC
Barry D. Horowitz is a founding partner and president of the law firm of Nirenstein, Horowitz & Associates, P.C. He received his diploma from the Loomis Chaffee School and his Bachelor of Arts from Bennington College, where he dual majored in philosophy and music.

Mr. Horowitz was awarded his Juris Doctor degree with honors from the University of Connecticut School of Law. While attending law school, Mr. Horowitz received the American Jurisprudence Award in Legal Ethics and the Nathan Burkan Award.

After graduation from law school, Mr. Horowitz continued his legal education at New York University School of Law where he received a Post Doctorate Law Degree in Taxation. He has also recently received a national achievement award.

Mr. Horowitz is admitted to practice before all the state courts in the State of Connecticut and the United States District Court.

Mr. Horowitz was selected for Super Lawyers in 2021.
Barry D. Horowitz, Estate Planning Attorney
Latest posts by Barry D. Horowitz, Estate Planning Attorney (see all)
  • Take Precautions to Protect Your Legacy - September 12, 2023
  • Regular Reviews and Updates of Your Estate Plan Are Essential - August 24, 2023
  • Estate Planning Tips to Help You Protect Your Family - August 8, 2023
Share our Content:

Filed Under: Medicaid Asset in Connecticut

Other Articles You May Find Useful

qualify for Medicaid
What Assets Can I Have and Still Qualify for Medicaid in Connecticut?
Connecticut Medicaid eligibility
Do Your Assets Affect Connecticut Medicaid Eligibility?
Is There A Medicaid Asset In Connecticut 150x150
Complimentary Report: Is There a Medicaid Asset in Connecticut

Primary Sidebar

Nirenstein, Horowitz & Associates

Upcoming Seminars

Estate Planning Seminar

Date: October 17

Venue: Canton Community Center, 40 Dyer Avenue, Collinsville, CT, 06019, United States

Estate Planning Seminar

Date: October 18

Venue: Cheshire Public Library, 104 Main Street, Cheshire, CT, 06410, United States

See all Seminars

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

TESTIMONIALS

Blog Subscription

Our blog gives you the most up-to-date estate planning news. Sign up today to receive our regular updates!

  • This field is for validation purposes and should be left unchanged.

WESTPORT OFFICE

8 Wright Street, Suite 107
Westport, CT 06880
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr_map

Somerset Square

200 Glastonbury Boulevard, Suite 202
Glastonbury, CT 06033-4418
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr1_map

Office Hours

Monday8:30 AM - 5:00 PM
Tuesday8:30 AM - 5:00 PM
Wednesday8:30 AM - 5:00 PM
Thursday8:30 AM - 5:00 PM
Friday8:30 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.