Medicaid Planning

Tucson Medicaid Planning Attorney

Comprehensive Medicaid Planning Solutions for Families

One of the challenges of growing older is the concern about how you will pay for long-term care should the need arise. Many older adults turn to Medicaid for help with those costs, but Arizona uses the Arizona Long Term Care System (ALTCS), which can be challenging to navigate without legal assistance.

If you are concerned about protecting your assets for your spouse and future generations, it is best to consult an attorney as soon as possible. Although several legal options are available, many must be implemented and maintained for a defined period due to the five-year look-back period.

Contact Doug Newborn Law Firm, PLLC, today to schedule a free initial consultation to discuss your legal options.

How do I qualify for ALTCS with too Many Assets?

How to pay for long-term care and Medicaid eligibility are two areas of concern that worry many older adults. The Arizona Long Term Care System (ALTCS) has specific eligibility requirements, and having too many assets over the $2,000 for single individuals can cause significant problems.

An experienced Medicaid and elder law attorney can create a personalized plan to help you qualify while protecting your assets. For example, your legal representative can develop a “spend down” strategy that converts countable assets into non-countable assets. Some of the most common methods attorneys use to identify and pay off debts include paying off mortgages and credit cards, and making home repairs. An attorney may also advise you to prepay for funeral and burial expenses.

Other solid legal options include creating a Medicaid Asset Protection Trust (MAPT) to shield assets and spousal transfers. Spousal transfers allow the community spouse to retain a portion of the combined assets, helping the applicant qualify for benefits.

What is the “5-Year Lookback Rule” in Arizona?

To qualify for Medicaid, ALTCS will review your financial history for the 60 months (five years) before your application date. The purpose of the review is to determine if you have given any gifts or made any asset transfers for less than fair market value to try to meet eligibility requirements.

ALTCS will scrutinize your property deeds, bank statements, or other financial records to identify any gifts or asset transfers over $500 in a given month that were not made for fair value.

If a penalty is detected, a penalty period will be calculated by dividing the total value of the transferred assets by the typical monthly expense for local nursing home care. During the penalty period, you will not be eligible for Medicaid coverage. The start date for applicable penalties begins when you are eligible for Medicaid and in need of care, not when the transfer occurred.

Exempt Transfers

Not all transfers are subject to penalties and include:

  • Transfers to a spouse or disabled child
  • Transferring your home to an adult child who acted as a caretaker and provided care for at least two years prior to the applicant needing long-term care

How Can I Protect Assets for my Spouse?

A common concern for many individuals as they age is how they can safeguard assets for a surviving spouse. Although several legal strategies can be utilized, it is important to find the ones that work best for your situation.

At Doug Newborn Law Firm, PLLC, we recognize that financial security is essential as you age. When you come to us for help with your elder law matters, we can work together to find the best solution for your needs.

Some of the most common legal strategies for helping a spouse to protect their assets include:

  • Moving assets into an irrevocable Medicaid Asset Protection Trust (MAPT) at least five years in advance of applying for Medicaid to comply with the look-back period.
  • Taking advantage of the Community Spouse Resource Deduction that allows your spouse living at home to retain a portion of your combined total assets.
  • Transferring countable assets into a properly structured, Medicaid-compliant annuity that converts excess resources into income for your spouse while preserving eligibility.
  • Transferring assets to your spouse that are exempt from penalties, including your primary residence or one vehicle.

What is a Medicaid Asset Protection Trust (MAPT)?

A Medicaid Asset Protection Trust (MAPT) is an irrevocable trust commonly used to protect assets. Once assets are placed in the trust, they are no longer considered part of your property. Instead, the assets belong to a trust and are exempt from probate as long as the trust was established at least 60 months (five years) before you apply for ALTCS benefits.

When you create a MAPT, a trustee will manage the assets placed in the trust, ensuring compliance with ALTCS’s strict eligibility requirements. Unlike other trusts, you cannot use the principal for personal expenses.

Assets that can be placed in a MAPT include your home, real estate, cash, stocks, bonds, or non-qualified annuities. It is worth emphasizing that once the assets are placed in the MAPT, you will not be able to utilize them for your personal needs, so you must weigh your options carefully before making a decision.

Contact Doug Newborn Law Firm, PLLC, today to Get Started Protecting Your Future

One of the benefits of long-term care planning is that you can make informed decisions before a crisis arises. Because long-term and health care are issues that many Tucson residents face, it is best to seek legal counsel to determine what options are right for you.

Medicaid planning and elder law specifically affect older adults and can be frightening to try to manage without qualified legal representation. If you have questions about our Medicaid or elder law services, contact Doug Newborn Law Firm, PLLC, today at 520-355-1161 to schedule a free consultation.