Medicaid Asset Planning
New Jersey is a notoriously tough state in which to do Medicaid planning, and it is difficult to “shield” many assets from payment for medical expenses unless someone plans at least five years in advance. However, it is still possible, especially with a married couple with only one spouse entering a facility, where tremendous opportunities exist for planning even on the precipice of a crisis. The key is to start early and involve experienced professionals every step of the way. Asset planning in New Jersey is not for the faint of heart, and attempts by lay people to preserve assets can often have the opposite of the intended effect.
Medicaid asset planning and preservation takes advantage of every nuance of the existing state and federal regulations. For example, it is possible to transfer a Medicaid applicant’s house to a caregiver son or daughter without penalty under certain circumstances, but the State is very strict about its interpretation of those requirements, and in some instances are making rules that exceed the plain text of the regulations. A family who tries in good faith to take advantage of this transfer opportunity without legal counsel may find itself subject to a penalty even if everything else was done properly. Families who do extensive research may also be aware of a type of annuity that can preserve assets, but without meeting very specific requirements, the annuity is treated as a gift and will result in a lengthy penalty.
It is important for families to avoid common Medicaid planning traps, such as paying family members for caregiving, making $14,000 gifts, or refusing to provide (or providing incomplete) paperwork including bank statements. The staff at Archer Law Office counsel families throughout central New Jersey to accomplish their planning goals, which may include paying privately for care, in balance with tax savings and other potential legal benefits. Both the family and the law firm must understand that the care and well-being of the family’s loved one is paramount, and everyone must view any complex planning or financial benefits in that perspective.
Archer Law Office Can Help
For More Information Contact this office (609) 842-9200