Applying for Medicaid is highly technical and complex process with many traps for those who are inexperienced in navigating the system. There is a lot of misinformation out there which can lead to costly planning mistakes including: denial of benefits, a Medicaid penalty period, or tax liability. Bad advice can lead seniors to purchase products or take actions that won’t help them qualify for Medicaid and may actually, make it more difficult.
In recent years a number of non-lawyers have started businesses offering Medicaid planning services to seniors. We have also seen many nursing homes partnering with such organizations and/or social workers assisting individuals with the Medicaid application process, even though they are unfamiliar with the complex planning options that may be available. While using one of these services or relying on “unpaid” advice may be cheaper than hiring an attorney, the overall costs may end up being far greater.
As a result of problems that have arisen from non-lawyers offering Medicaid planning services, a few states (Florida, Ohio, New Jersey, and Tennessee) have issued regulations or guidelines providing that Medicaid planning by non-lawyers will be considered the unauthorized practice of law. For example, in Florida, a non-lawyer may not render legal advice regarding qualifying for Medicaid benefits, draft a personal service contract, determine the need for or execute an income trust, or sell income trust kits. In Florida the unlicensed practice of law is a felony that is punishable by up to five years in prison, while in Ohio practicing law without a license is subject to civil injunction, civil contempt, and civil fine.
Applying for Medicaid is a highly technical and complex process. The experienced, certified elder law attorneys at Kreisher Marshall & Associates, LLC, are knowledgeable about the Medicaid process and can help clients to plan and find significant financial savings by using trusts, transfers of assets, purchase of annuities or increased income and resource allowances for the healthy spouse.