Top Medicaid Planning Lawyers
Have you ever felt a knot in your stomach when thinking about the future, especially when thinking about the cost of long-term care? That’s quite understandable. After all, no one can predict when a health care crisis may happen.
Many people worry about how they or their loved ones will pay for a nursing home or in-home care. Others are afraid of running out of money or losing everything they have worked so hard to build.
At Arkansas Legacy Planning, we understand these concerns all too well. Our goal is to guide Arkansas families through the world of Medicaid planning with compassion and a clear plan.
We help plan ahead so that you can qualify for Medicaid while still protecting your home, savings, or other precious assets.
Understanding Medicaid Planning
Medicaid planning is about making sure you or your loved one can get the care you need without losing everything in the process.
Have you seen what nursing homes cost these days? We’re talking $8,000 to $12,000 every month. That’s like buying a new car every few months. Most families simply can’t sustain that kind of expense for long.
Medicaid, a joint federal and state program, is managed by the Arkansas Department of Human Services (DHS) for Arkansas residents. The program helps eligible individuals pay for medical services, including long-term care in nursing homes or at home.
However, to qualify, you typically need to meet limits on your monthly income and overall assets. And that’s exactly what Medicaid planning helps you achieve: qualify.
Here’s what often happens without planning: The family spends down an elderly loved one’s life savings until almost nothing is left, sells the family home that holds decades of memories, and still ends up applying for Medicaid anyway—just with nothing preserved.
But it doesn’t have to be that way. Good Medicaid planning helps you:
- Keep your home in the family
- Make sure your spouse isn’t left broke while you’re getting care
- Create a safety net for those “extras” that make life better
- Leave something behind for the kids or grandkids you love
With Medicaid planning, you can structure your finances to help you qualify for Medicaid while holding onto more of the resources you have built over the years.
Medicaid Eligibility Requirements
In Arkansas, Medicaid eligibility has a few main requirements. While federal rules set the foundation, Arkansas applies its own guidelines under the Department of Human Services. Here are the key factors:
1. Residency
You must be a resident of Arkansas to apply for Medicaid in Arkansas. If you recently moved to the state, you will need to show proof of residency, such as a lease or utility bill.
2. Age or Medical Need
Most people think of Medicaid for those who are 65 or older, but younger individuals with qualifying disabilities can also apply. If you’re unsure whether you meet the medical need, you can visit the DHS’s FAQ page or talk to a legal professional for clarity.
3. Income Limits
For long-term care Medicaid (like nursing home coverage), Arkansas sets a monthly income limit. This limit often changes year to year and is currently $2,901 per month for an individual. If you earn more than this, you might still qualify through a Qualified Income Trust (Miller Trust).
4. Asset Limits
You’re generally allowed to keep certain assets, like one car and your primary home (up to a certain value), but the rest (bank accounts, CDs, stocks, and bonds) need to stay below roughly $3,000 if you’re single. If you’re married, there are higher allowances to protect the “community spouse”.
5. Look-Back Period
Arkansas follows the federal five-year look-back rule. During this time, the state checks if you gave away money or property that might have counted toward your Medicaid eligibility. If any transfers break the rules, you may face a penalty period before you can start receiving benefits.
Protecting Assets with Medicaid Planning
You have saved your whole life, bought a home, maybe even put away something for your kids or grandkids. It would be devastating to even imagine that long-term care costs could wipe it all out in just a few years.
Medicaid planning is what helps prevent this from happening. But this kind of planning isn’t about hiding money or gaming the system. It’s about knowing the rules and using them to your advantage. Some of the tools used for Medicaid planning include:
- Irrevocable trusts: By transferring assets to this type of trust, they’re no longer considered “countable” for Medicaid purposes after the five-year look-back period. These trusts must be established at least five years before you need Medicaid benefits.
- Life estate deeds: Enhanced life estate deeds (sometimes called “lady bird deeds”) allow you to transfer your home to beneficiaries while retaining the right to live there during your lifetime. This protects your home from Medicaid estate recovery after you pass away.
- Spousal transfers: Transfers between spouses are exempt from Medicaid penalties. This means assets can be legally transferred to the healthy spouse, who can then use planning strategies to protect them.
- Annuities: Medicaid-compliant annuities can convert countable assets into an income stream for the healthy spouse, potentially helping you qualify for benefits while providing financial security for your spouse.
- Spend-down strategies: Spending down assets on exempt items—like paying off debt, medical devices, or prepaying funeral expenses—can help you meet eligibility rules.
However, what works for one family may not work for another. Our attorneys at Arkansas Legacy Planning can help you determine which approaches make the most sense for your unique situation.
Creating a Medicaid Plan
So, how do you actually start building a Medicaid plan? Don’t worry—you don’t need to have it all figured out before talking to a lawyer. In fact, the whole point of Medicaid planning is to take a step back, look at your full picture, and create a strategy that fits your life.
Here’s what the process usually looks like when you work with our team at Arkansas Legacy Planning:
- We sit down and talk. We want to hear your story and understand your goals.
- We help you gather the right documents, like bank statements, property records, retirement accounts, and income sources.
- We explain your options in plain language. Whether it’s Medicaid asset protection trusts, a spend-down strategy, or something more customized, we will walk through what it means and how it affects you.
- We create a plan that fits you. We don’t believe in cookie-cutter solutions. Every family is different, and your Medicaid plan should reflect your values and priorities.
- We take care of the legal side. This includes drafting documents, reviewing assets, and helping you stay compliant with Medicaid rules.
Is it better to plan early? Absolutely. Just like it’s easier to protect a house before a storm hits rather than repair it afterward. But even if you’re in a crisis situation right now, don’t lose hope. We have “emergency” strategies that can still help protect a surprising amount of your assets.
Frequently Asked Questions
Costs vary depending on your needs. At Arkansas Legacy Planning, we’re upfront about pricing, so there are no surprises. Many clients find that planning with a lawyer ultimately saves money by avoiding costly mistakes or missed opportunities.
Planning ahead (ideally five years before applying) is key. A Medicaid planning attorney can help you choose the best approach based on Arkansas laws and your specific goals.
As of recent guidelines, the monthly income limit for long-term care Medicaid in Arkansas is around $2,901 for individuals. If you’re over the limit, a Qualified Income Trust may help you qualify. These numbers can change, so check with a lawyer or DHS for updates.
The earlier, the better. Starting at least five years before you may need care allows for more asset protection options. But even if you’re already facing a care need, there may still be legal tools to preserve some assets.
You’re not required to have a lawyer, but the application process can be tedious and confusing. An elder law attorney helps avoid errors, delays, or penalties. Even a single consultation can give you peace of mind and make sure you’re on the right track.
Contact Us Today
Feeling a quiet sense of dread about how to pay for long-term care? You might even feel like you’re playing a guessing game with your family’s future. Our team at Arkansas Legacy Planning is here to make Medicaid planning as hassle-free and streamlined as possible. Reach out today to find out how we can help.
Contact Us
Feeling lost or worried about your future? Our team at Arkansas Legacy Planning is here to provide personalized support for all your estate planning needs. Contact us today so we can start working on a clear, tailored strategy designed specifically to safeguard what matters most to you.
