Medicaid Look-Back Period In New York: How It Affects Your Estate Plan

In this article, you can discover…

• How Medicaid’s look-back period works in the State of New York.
• When to begin planning to avoid Medicaid’s look-back periods.
• The types of transfers that could harm your eligibility for Medicaid.

What Is The Medicaid Look-Back Period In New York?

This depends very much upon the type of Medicaid program. “Chronic Care Medicaid”, which covers nursing home care, has a look-back period of five years from the date you apply for those particular Medicaid benefits.

Home Care Community Medicaid, which would cover care at your home, currently does not have a look-back period. While there have been attempts by the New York State government to change this standard and impose a two-and-a-half-year look-back period on Home Care Community Medicaid, these laws have not yet been implemented and will not likely be implemented until 2026, if at all.

These look-back period laws apply across all counties in the State of New York.

What Types Of Asset Transfers Are Penalized Under Medicaid Look-Back Rules?

All kinds of transfers can be targeted by Medicaid’s look-back period. While we might see these transfers as “gifts”, any transfers of assets to children, transfers to a spouse, and transfers to an irrevocable trust can be penalized under Medicaid.

Medicaid will examine your bank accounts. If they see, for example, that you wrote a $10,000 check to your child, they will assume you did so for Medicaid planning purposes. You will have to prove otherwise, and an experienced estate planning lawyer can help you make that case.

Attorney Paul Hyl is a caring, experienced attorney serving New York. For over 20 years, he’s helped clients just like you plan ahead for Medicaid, nursing home care, and a much more secure retirement.

Have questions, or in need of legal help? Reach out to Hyl Conte Law, PLLC for a free initial consultation today.

In very specific cases, certain transfers can be exempt from Medicaid rules, such as transfers made to pre-pay for a funeral or the transfer of property to a special-needs family member or an adult child who is your caretaker.

However, transfers of assets to pay for services would be exempt. For example, if your son has a friend who is a roofer and you transfer $10,000 to your son to pay this roofer, this amount would be exempt so long as you have receipts for the work done.

How Can I Legally Protect Assets From Medicaid Spend-Down Requirements?

The best way to protect your assets from Medicaid spend-down requirements is to transfer them to a special trust more than five years before you foresee yourself needing nursing home care.

The difficult aspect of this is that you can not know with any certainty when you will actually need nursing home care. You may not need this care for another 10 to 15 years, or you could need care one year from now. The safest thing to do is, around the time that you retire, transfer your assets into a Medicaid asset protection trust.

Can you simply transfer assets to your children? This is not advised, as such transfers can cause serious tax complications and asset protection issues. It is far safer to protect your assets by transferring ownership of them to a trust.

When Should I Start Medicaid Planning To Avoid Look-Back Issues?

Most clients begin to transfer assets when they retire. This could be as early as your 50s or as late as your early 70s. However, if you have a medical condition or have just received a diagnosis that could require you to need nursing home care far sooner, you should consider transferring assets as soon as possible.

Mind you, you don’t need to transfer all of your assets and drain your bank accounts to zero. Your attorney will work with you to tally your assets and determine which assets need to be transferred. Family dynamics, budgeting issues, and your goals for retirement will all impact how you plan ahead, and an estate planning lawyer can help you work out the smartest timeline and best course of action.

Still Have Questions? Ready To Get Started?

For more information on understanding the Medicaid look-back period, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (877) 200-6845 today.