Long Term Care Planning For Single Persons

A single person cannot have more than $2,500 ($2,000 in Massachusetts) to qualify for medical assistance. Although most people believe they must spend their money down to that amount before they qualify for Medicaid or MassHealth (and most nursing homes will not tell you otherwise), there are planning techniques that can salvage some of the assets of a single person for their loved ones.

One technique involves gifting a portion of the assets and retaining enough assets to pay for the disqualification that arises as a result of the gift made. This technique is generally termed "half a loaf" although it is not always a gifting of exactly one-half the assets of a single person.

Another technique is to gift assets at least five (5) years in advance of entering a nursing home. This is always challenging because no one knows when they will need long term care and they put off such planning. But if you think you can get by 5 years you can put your home in your children's name or in a trust for your children and retain a Life Estate. If you get by the 5 years, your house will not be a countable asset if you enter a nursing home.