Medicaid Planning for Long-Term Care

Medicaid pays for long-term care for people who meet strict income and asset requirements (typically $2,000 in assets for an individual).

To qualify, many people 'spend down' their assets on care costs.

Medicaid planning — legally restructuring assets to qualify while preserving wealth for a spouse or heirs — is a specialized area of elder law. Common strategies include: irrevocable trusts (5-year look-back period), spousal asset transfers, and annuities. The 5-year look-back rule means asset transfers made within 5 years of applying for Medicaid can result in a penalty period..