Medicaid Crisis Planning: Protect Assets and Care Access

Medicaid crisis planning is essential when a loved one suddenly needs nursing home care. In Texas, the average monthly cost of nursing home care is $6,388, and few families can afford these expenses long-term. Without planning, families may lose their life savings before qualifying for Medicaid coverage. Acting quickly can mean the difference between financial stability and crisis.

Why Medicaid Crisis Planning Is Urgent

Medicaid has strict eligibility requirements:

• Asset Limits: Applicants generally cannot have more than $2,000 in countable assets.

• Income Limits: Monthly income must also fall below specific thresholds.

Without legal strategies, families often “spend down” their assets, leaving little for a healthy spouse or future generations.

Key Strategies in Medicaid Crisis Planning

1. Asset Protection Trusts These trusts legally transfer ownership of assets, protecting them from being counted toward Medicaid eligibility.

2. Converting Countable Assets Families can convert savings into exempt assets, such as a primary residence or prepaid funeral plan.

3. Spousal Protections Medicaid rules allow for a “community spouse” (the one not in care) to retain certain income and assets, preventing financial ruin.

   
   

Benefits for Families

With Medicaid crisis planning, families can:

• Access high-quality care without losing everything.

• Protect a family home and savings.

• Preserve financial security for children and spouses.

  
  

For example, one Texas family saved $85,000 in nursing home costs by restructuring assets properly before applying for Medicaid.

Don’t let the high cost of care wipe out your family’s future. Contact Generations Law Group of Texas today for a consultation, or explore our blogs for practical insights.