Medicaid planning is complex, and a single mistake can cost your family thousands or delay coverage when it’s needed most. Many families discover too late that a well-intended move backfired. Contact Kreisher Marshall & Associates, LLC to speak with an elder law attorney who can help you avoid these costly errors.
Waiting Too Long to Plan
The biggest mistake families make is assuming there is plenty of time to figure things out later. Medicaid eligibility rules include strict look-back periods and asset limits that require preparation, and once a health crisis hits, your options narrow dramatically. Starting the planning process early gives you the greatest flexibility.
Improperly Titling Assets
How your assets are titled matters more than most people realize when it comes to Medicaid planning and eligibility. Placing property in the wrong name, adding a child to a deed, or holding joint accounts without understanding the consequences can trigger penalties or disqualify you from benefits entirely.
Gifting Assets Too Soon (5-Year Look-Back)
Medicaid applies a five-year look-back period to all asset transfers made before an application is filed. Any gifts or transfers made within that window can result in a penalty period of ineligibility:
- Cash gifts to children or grandchildren
- Transferring real estate below fair market value
- Adding a family member to a bank account and withdrawing funds
- Donating to charitable organizations above the allowable thresholds
- Selling property to a relative at a reduced price
Failing to Protect the “Community Spouse”
When one spouse needs long-term care, the other spouse still needs enough income and assets to live on. Federal and state rules allow the community spouse to retain a certain amount under the Community Spouse Resource Allowance, but failing to take advantage of these protections can leave the healthy spouse financially vulnerable.
Misunderstanding “Spend-Down” Rules
Many families mistakenly think they must spend all their savings to qualify for Medicaid. In Pennsylvania, applicants can convert excess assets into exempt resources. However, improper spending can delay eligibility rather than speed it up.
Ignoring Medicaid Estate Recovery Rules
After a Medicaid recipient passes away, the state may seek reimbursement from the estate for benefits paid during the recipient’s lifetime. Under 42 U.S.C. § 1396p, states are required to pursue estate recovery against certain assets, and families who fail to plan for this can lose property they expected to inherit.
Failing to Consult an Expert
Medicaid rules are complex, and well-meaning advice from friends or family members often leads to expensive mistakes. Working with someone who handles these cases regularly helps you avoid pitfalls that could jeopardize your eligibility:
- Misinterpreting income and asset limits
- Filing incomplete or inaccurate applications
- Missing deadlines for appeals or reconsideration
- Overlooking available exemptions and allowances
- Making transfers that trigger avoidable penalty periods
Discuss Your Case With a Pennsylvania Medicaid Planning Attorney
Are you worried that a mistake you have already made could affect your Medicaid eligibility or your family’s financial security? Call Kreisher Marshall & Associates, LLC at 814-458-6294 or contact us online to schedule a consultation with a Pennsylvania Medicaid planning attorney who will review your situation and help you build a strategy that protects your assets and your family’s future.