How Can You Utilize Medicaid Planning to Secure Long-Term Care Without Depleting Assets?

Many families in New Hyde Park worry about the rising costs of long-term care. You may have heard that an estate plan is the best way to distribute your belongings. It is true that a plan helps your wishes stay protected. However, Medicaid planning is equally vital for protecting your current assets while you are still here.

Medicaid is a healthcare program that helps certain people pay for medical coverage. This includes elderly individuals who need long-term care. As of 2026, over 78 million Americans are enrolled in Medicaid. Because the program helps those who cannot afford private insurance, it has strict financial rules.

If you or a loved one needs to qualify for Medicaid, working with an attorney is helpful. Our team can review your finances and help you determine how to qualify while protecting your assets legally.

Understanding New York Medicaid Caps

Medicaid caps are financial limits the government sets for the program. The government looks at your monthly income and the value of your assets to see if you are eligible. In New York, these caps for long-term care change regularly.

As of January 1, 2026, the standard limits for individuals and couples in New York are:

• Income Limit: $1,800 a month for singles; $2,433 a month for married couples.
• Asset Limit: $32,532 for singles; $43,781 for married couples.

New York also provides spousal protections. A healthy spouse at home may keep a Community Spouse Resource Allowance of up to $162,660. Medicaid rules are complex and can vary based on your health and living situation. This is why you should consult an Medicaid planning attorney before you apply.

What Assets Does Medicaid Count?

The government expects you to use your own resources for healthcare before it provides aid. This means they count most of your belongings during the application process.

Countable assets include checking accounts, real estate, stocks, and investments. Some items are exempt. These generally include your primary home, one vehicle, and personal possessions. In New York, some retirement accounts like IRAs may also be exempt if they are in payout status.

If your assets are over the limit, you may still qualify through legal planning.

Qualifying for Medicaid Without Losing Your Assets

One strategy involves the Medicaid Lookback Period. In New York, the state reviews your financial records for the past five years when you apply for nursing home care. If you give away assets during this window, you may face a penalty.

You can use several legal tools to remain eligible while securing your legacy:

1. Medicaid Asset Protection Trust (MAPT): You transfer ownership of assets to a trustee. Since you no longer own the assets legally, they do not count against your limit.
2. Medicaid-Compliant Annuity: This turns a lump sum of cash into an income stream that Medicaid allows.
3. Life Estates: This allows you to transfer your home to a family member while keeping the legal right to live there for the rest of your life.
4. Promissory Notes: This involves a specialized loan strategy often used in “crisis planning” when care is needed immediately.

Professional Help for Your Medicaid Needs

The Medicaid system is intimidating. Even small errors can cause a denial of benefits. At Davidov Law Group, our attorneys bring together financial and legal experience.

We are estate planning attorneys who also run a financial advisory practice. This allows us to handle both the legal trust work and the financial management needed for a successful application.

Call us today at 516-253-1366 to discuss how we can help you qualify for the care you deserve.