Case Study:

Client Background

A caller approached Rosenblum Law seeking urgent help for his elderly parents. Although his parents had a will and power of attorney in place, their situation changed drastically when his mother was diagnosed with dementia and quickly lost capacity. The son, along with his brother, held power of attorney over their mother but was unable to provide the round-the-clock care she required. With their mother needing Medicaid as soon as possible, the family faced the challenge of protecting their assets while ensuring her eligibility.

Challenges

1. The family needed to secure Medicaid for their mother without triggering a violation of the Medicaid lookback period, which would penalize asset transfers within five years of applying for Medicaid.
2. The parents owned multiple properties, and transferring these assets could potentially disqualify the mother from receiving Medicaid benefits.
3. The father’s assets had to be carefully managed to avoid counting against the mother’s Medicaid eligibility while ensuring the family’s estate remained protected.

Solutions Provided

Rosenblum Law developed a strategic plan that leveraged New Jersey’s Medicaid spousal exemption privilege and advanced trust planning to secure Medicaid for the mother while protecting the family’s assets. Here’s how we managed this complex situation:

1. Medicaid Spousal Exemption Privilege: To avoid disqualifying the mother from Medicaid, we utilized New Jersey’s Medicaid spousal exemption privilege. This allowed the couple’s multiple properties to be transferred solely to the father’s name without violating the Medicaid lookback period. This strategy ensured that the mother could qualify for Medicaid immediately without penalty.
2. Establishing the Medicaid Trust: While transferring assets to the father protected the mother’s eligibility, the father’s assets still posed a risk of counting against her Medicaid qualifications. To prevent this, we established a Medicaid Trust, which allowed us to shelter the father’s assets. Although this would have triggered a lookback period violation for the father, it did not impact the mother’s Medicaid eligibility, ensuring she could receive care without delay.
3. Final Stages of Medicaid Enrollment: With the strategic asset transfers and the Medicaid Trust in place, the family is now in the final stages of securing Medicaid for their mother. This plan not only protected their assets from Medicaid’s clawback provisions but also ensured that the mother was immediately eligible for the care she urgently needed.

Outcome

Rosenblum Law’s careful planning and utilization of Medicaid spousal exemptions and trust strategies ensured that the family’s assets were protected while securing immediate Medicaid eligibility for the mother. The family is now in the final stages of Medicaid enrollment, with peace of mind knowing that their mother will receive the care she needs without jeopardizing their estate.

Conclusion

At Rosenblum Law, we understand the complexities involved in securing Medicaid eligibility while protecting family assets. Our expertise in Medicaid planning and trust law allows us to create customized solutions that safeguard your family’s future, even in the most challenging circumstances. Whether you’re navigating Medicaid eligibility or protecting your estate, our team is here to help you every step of the way.