Joseph and Peggy (names changed for privacy)
Long Beach, NY
Medicaid Planning · Long-Term Care
A married couple in their early 70s needed to protect their home and savings from the rising cost of nursing home care, without leaving the well spouse financially vulnerable
$2 Million
In Family Assets Preserved
“I had no idea what I needed to do when I met you, and now I cannot have imagined what would have happened if I didn’t. I would be left with nothing because it all would have gone toward aides and medical care costs. You really changed my life with that inheritance.”
—Joseph’s daughter, Client
Goals and Concerns
Joseph and Peggy had been long-standing partners before eventually marrying. Throughout their relationship, they largely maintained separate assets and financial affairs.
That careful arrangement changed abruptly when Peggy suffered a stroke and required long-term care. As her need for care became more immediate, Joseph faced a difficult question: How could he make sure Peggy received the care she needed while preserving as much of their hard-earned wealth as possible?
The couple turned to our attorneys for help navigating Medicaid eligibility and the legal and financial complexities surrounding Peggy’s care.
The Challenge
The situation was complicated by Peggy’s loss of capacity. She did not have a valid power of attorney, leaving Joseph without the legal authority to access or manage several significant non-retirement assets held solely in Peggy’s name.
Before an effective Medicaid strategy could even be implemented, the family first needed to establish legal authority and determine exactly what Peggy owned and where those assets were held.
That proved to be a challenge of its own. Bags of unopened mail had accumulated, containing critical financial information that had to be reviewed and pieced together to identify Peggy’s accounts and other assets.
The Strategy
Our attorneys first pursued and obtained guardianship for Peggy, giving Joseph the legal authority necessary to address her financial and personal affairs.
The team then undertook a comprehensive review of the accumulated correspondence and financial records to identify Peggy’s assets and establish a complete picture of the couple’s financial circumstances. With that information in hand, we developed a Medicaid strategy utilizing the transfer-to-spouse exemption together with spousal refusal. This approach enabled Peggy to qualify for Medicaid while preserving significant assets for the couple.
But the planning did not stop once Peggy’s immediate care needs were addressed.
We subsequently helped Joseph establish a Medicaid Asset Protection Trust (MAPT) to protect assets for his future and for his family’s eventual benefit. Years later, when Joseph himself required long-term care, the assets held in the MAPT remained protected, and he was also able to qualify for Medicaid.
The Outcome
The legal strategy produced an outcome that extended well beyond securing Medicaid for Peggy. Approximately $2 million in assets, including a condominium and several brokerage accounts, were preserved. When Joseph later required long-term care, the MAPT helped protect those assets while he qualified for Medicaid as well.
Ultimately, after both Joseph and Peggy passed away, the assets were able to pass to Joseph’s daughter as they had intended, without the need for probate.
What began as an urgent long-term care crisis ultimately resulted in a coordinated strategy that addressed both spouses’ care needs while preserving the family’s wealth for the next generation.
Results & Impact
Approximately $2 million in assets preserved.
The matter required our attorneys to address several distinct legal challenges: from obtaining guardianship when Peggy could no longer act for herself, to uncovering and organizing previously inaccessible financial information, to implementing Medicaid planning strategies and establishing a MAPT for Joseph.
What This Real Client Story Demonstrates
Long-term care planning is not simply about qualifying for Medicaid. In complex situations, the legal strategy may need to address capacity, guardianship, asset ownership, Medicaid eligibility, asset protection and eventual wealth transfer – all at the same time.
Families do not need to know which strategies apply to their circumstances before seeking help. The first step is understanding the options…and what can still be done.
“This case illustrates why it can be important to seek legal guidance before a significant health or care event occurs, or as soon as possible. Even when a family is confronted with an immediate crisis, there may be legal strategies available to address the need for care while preserving assets for the future.”
—Tommaso Marasco, Attorney
Key Takeaways
- Long-term care planning is most effective when implemented before a health crisis occurs.
- Outdated estate planning documents may not address current laws or family circumstances.
- Coordinating legal, financial, and asset protection strategies can help families preserve more of what they have worked hard to build.