What are some options for protecting my home and assets if I need to apply for Medicaid?
Currently, in order to qualify for Medicaid in a nursing home, you can only have $2,000 in your name and certain other assets like an irrevocable prepaid funeral plan. For every $8,010 you give away to a person (other than your spouse with certain other exceptions) or an irrevocable trust, you are not eligible to receive Medicaid for one month. This is called the “penalty period”. This means that the greater the assets you want to protect, the earlier you should start planning. The biggest asset most people try to protect is their house. An outright transfer to family members is usually not suggested because you lose all control and there are capital gains consequences to your family. A better option is to deed the house to family members with a retained life estate for yourself. This gives you the right to live in the house for the rest of your life and continue to receive all senior citizens exemptions. Upon your death, the house passes automatically to the beneficiaries and they do
