What are the Top 8 Mistakes People Make with Medicaid Planning?

8 Medicaid Planning Mistakes Are:

1. Thinking it’s too late to plan.

It’s almost never too late to take medicaid planning steps, even after a senior has moved to a nursing home.

2. Giving away assets too early.

First, it’s your money (or your house, or both). Make sure you take care of yourself first. Don’t put your security at risk by putting it in the hands of your children. Precipitous transfers can cause difficult tax and Medicaid problems as well.

3. Ignoring important safe harbors created by Congress.

Certain transfers are allowable without jeopardizing your Medicaid planning eligibility. These include: transfers to disabled children, caretaker children, certain siblings and into trust for anyone who is disabled and under age 65; a transfer to a “pay-back” trust if under age 65; and a transfer to a pooled disability trust at any age.

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