One option for your ‘Medicaid Planning’ is to set up a trust to which you can transfer your assets so they’re not counted as owned by you according to Medicaid qualifying rules. You can get advice on Medicaid planning via atlantaestatelawcenter.com/medicaid/
That’s because anything you own must first be spent down to the low Medicaid asset threshold by paying long-term care costs before Medicaid takes over. Your state’s medical asset threshold is only a few thousand dollars or so because Medicaid is a poverty-based medical assistance program.
In an effort to minimize the growing burden of those seeking Medicaid assistance, the government is trying to minimize ‘Medicaid Planning’. To frustrate those who would simply transfer their assets to children or a trust, it requires all asset transfers to be completed 5 years (called the ‘look-back’ period) before applying for Medicaid.
So, anything you transfer within the 5-year look-back period will penalize you from immediately collecting Medicaid benefits. Before qualifying for free benefits, you must first pay whatever Medicaid benefits you receive for a number of months equal to the value you transferred (within the lookback period) divided by the monthly Medicaid benefit in the state you receive them.