Medicaid Planning

We assist families in planning for long term care. One of senior citizen's greatest fears is outliving their money. We help seniors and their families plan to ensure they do not outlive their money, while helping our clients receive the best care they can. It is important to us that we respect client's wishes regarding care, quality of life and end of life decisions. Whether the client wishes to remain at home, relocate to an independent or assisted living facility, or even a nursing home, we are here to help our clients and their families. 

We are all living longer and sometimes this means living with chronic or progressive diseases, like dementia, Alzheimer's, or Parkinson's to name a few. It is estimated that about two-thirds of people will need some type of long-term care in their lives. 

This raises all sorts of questions: How will I pay for an aide or a facility? Will my kids take care of me? Where will I live? Who will make decisions for me if I am incapacitated? What if I do not want to go to a nursing home?

Ensuring Your Future Care: Planning for Long-Term Care

At PK LAW, we specialize in helping families plan for long-term care so that you can focus on enjoying your golden years without financial worry.

Many people are unaware that Medicaid planning can protect assets while ensuring that your loved one receives the care they need. In some cases, families unknowingly spend hundreds of thousands of dollars on nursing home care before realizing they could have qualified for Medicaid much sooner.

"I helped a family whose mom had been in a nursing home for over three years. By the time they came to us, they had already spent over $400,000 of mom's savings. They had no idea that Medicaid planning could have saved them from this financial burden." – True story from a client.

Unfortunately, there is a lot of misinformation about long-term care. Many people mistakenly believe they have to sell their home or even divorce their spouse to qualify for care. That’s simply not true. We work with you to protect your assets while securing the care you need.

Proper planning starts with essential documents like powers of attorney, healthcare surrogates, and living wills. Simply filling out forms isn’t enough—these documents must be carefully crafted to reflect your specific wishes.

Planning ahead ensures that your care meets your preferences and alleviates the stress for both you and your loved ones.

What is Medicaid?

Medicaid is a government program that helps cover the cost of long-term care for individuals with limited income and assets. 

However, qualifying for Medicaid can be incredibly complex.

Common Questions About Medicaid:

  • Will Medicaid cover nursing home care?

    • Medicare often covers short-term care but does not cover long-term stays in nursing homes. Medicaid is usually the solution for long-term care, but qualifying can be tricky.

  • What are the eligibility requirements?

    • This varies in every state but in Florida, in 2025, a single individual must have less than $2,000 in assets and less than $2,901 in monthly income to qualify. 

    • For a couple, the limits are higher—$3,000 in assets and $5,802 in income.

 

If an applicant is over the income limit, we can fix that by drafting and funding a Qualified Income Trust (a QIT or Miller Trust which basically handles the excess income.

  • What assets count toward the limit?

    • While there are strict asset limits, certain assets are exempt and do not count toward eligibility, such as:

      • Your primary home (with equity up to $730,000)

      • One car

      • Life insurance with a face value up to $2,500

      • Personal effects and an irrevocable funeral contract

 

But most assets count towards the asset limit, such as bank accounts, investment accounts, savings accounts, investment properties, stocks, bonds, etc. 

  • What if my loved one has more assets?

    • If your loved one’s income or assets exceed these limits, WE CAN HELP!   Through strategies  we can legally shelter assets, allowing your loved one to qualify for Medicaid without spending down everything.

Here are some common examples of cases we see all the time:


One Spouse Needs Medicaid: There Are Solutions—Get the Right Advice

Example 1: Married Couple and One Spouse Needs Medicaid

Meet John and Amy. Amy is in her early 70s, and John is almost 80. One day, John suffers a severe stroke and is rushed to the hospital, then transferred to rehab. After some time, Amy is told that John is no longer making progress and will need long-term care in a nursing home or long-term care facility.

Amy is understandably devastated, but she knows she needs to act quickly. 

The cost of nursing homes in South Florida average well over  $10,000 per month, and Amy is overwhelmed. Despite having savings and investments, she is uncertain how they can afford this care without depleting their entire life savings.

 

This is a highly technical area of law, and relying on advice from friends, neighbors, or random sources can lead to costly mistakes. If you’re facing a similar situation, it’s essential to work with an experienced Elder Law attorney who can navigate these complex rules and protect your family’s assets.

 

Trust me - we have had to fix messes created by people who do not know how to properly plan for these issues and it always result in more money and time spent for the client. 

Example #2: An unmarried  person needs Medicaid…How do we get it?

Let’s say your father passed away years ago, and your mother, Ruth, has been living independently. However, over time, her health has deteriorated—whether due to frequent falls or dementia—and it’s now necessary to move her into a nursing home. 

 

This is a tough decision, but unfortunately, sometimes it’s the only option.

Nursing home costs in South Florida average well over $10,000 per month. Ruth has some savings. However, if her assets exceed $2,000 in non-exempt assets, she won't qualify for Medicaid. 

 

WE CAN HELP! There are strategies available to protect Ruth’s assets while ensuring she gets the care she needs.

 

One common strategy is a Personal Services Contract (PSC). This allows Ruth to legally pay someone—like you or a trusted family member—for services such as:

Example #3: My Mom Lives in Florida, But I Don’t—Should She Stay There for Nursing Home Care?

This is a common situation. Many seniors retire to Florida, while their adult children live out of state. For example, let’s say Tina has lived in Florida for over 15 years. Her husband passed away years ago, and while her son Dan lives in New York, Tina has built a life and community in Florida.

 

Now, Tina’s health is declining, and she can no longer live alone. Dan is faced with a tough decision:
Should Mom stay in Florida for care—or move closer to me?

 

This is a deeply personal decision, but it's also a legal and financial one. Medicaid is a state and federal program, which means Medicaid eligibility and planning rules vary by state. Some assets that are exempt in Florida may not be in New York. Certain strategies that work in Florida might not apply elsewhere.

She starts worrying—Will she have to sell their home? 

Does she need to downsize and give up the home she loves? 

Does she need to get divorced to protect their assets? 

The financial and emotional stress is overwhelming.

BUT - we can help! Medicaid planning offers options for situations like this. One solution commonly used in Florida is Spousal Refusal. While the process is detailed and requires professional guidance from an Elder Law attorney, here’s the key takeaway:

  • Amy does not have to sell their home.

  • Amy can keep her assets.

  • John can qualify for Medicaid to cover the nursing home costs.

  • No waiting 5 years before John can qualify

  • Taking her to medical appointments

  • Assisting with legal and medical matters

  • Helping with daily tasks like shopping, meal prep, and bills

In simple terms: Ruth signs a contract agreeing to pay for services you provide, at fair market value. The idea is that if you weren’t there to help, someone else would have to be hired for those tasks. By compensating you for these services, Ruth can reduce her asset value, helping her qualify for Medicaid.

 

However, like all Medicaid planning strategies, a PSC must be executed and done correctly. These processes can be complex, and it's crucial to consult with an Elder Law attorney to ensure everything is done according to the law.

Together, we help you weigh the pros and cons—so your family can make the best decision possible, with confidence.

Because Medicaid planning is highly complex and state-specific, it’s essential to work with experienced professionals who understand the nuances of each jurisdiction.

  • Your loved one’s health and care needs

  • Available local support

  • Medicaid eligibility differences

  • Asset protection strategies

At PK LAW, we regularly help families navigate this situation. We coordinate with Elder Law attorneys in both states to review: