We Have Answers to Your Questions!
Is Medicaid planning legal?
Yes, it is. You have a legal right to protect the maximum amount of income and assets. Just as you can legally reduce the amount of income tax you pay every year, you can legally protect your assets and income to reduce your exposure to nursing home payments. My law firm was created to guide families in doing just that.
Does a Living Trust protect our assets from nursing home costs?
Unfortunately, no. A revocable living trust does offer several asset management advantages. But, because it can be revoked, the assets are easy to get to, it does not protect Medicaid’s spend-down rules. My firm can help you overcome any problems with your living trust
What does "spend down" mean?
Spending down reduces your assets to meet Medicaid’s qualification limits. While it may seem that all excess assets must go toward nursing home care, Medicaid’s rules allow strategies to minimize the spend-down amount. Let me guide you with simple steps that legally protect your assets and income.
What assets does Medicaid expect me to spend down?
What income does Medicaid count?
Medicaid considers only the applicant’s income when determining eligibility. Income includes wages, Social Security, Veterans benefits, SSI, pensions, IRA distributions, investment and rental income, private annuities, unemployment benefits, and workers’ compensation.
What is the income limit for Medicaid in Texas?
The income limit for 2025 is $2,901. This is the gross amount before any deductions. Income taxes, health or life insurance premiums, or miscellaneous items such as charitable donations and union dues may have reduced the amount you receive.
What happens if my income exceeds the monthly income limit?
Texas applicants with gross income over $2,901 need a Miller Trust (a Qualified Income Trust) to qualify for Medicaid. The trust is only for income, not to protect assets. Medicaid strictly controls how funds can be placed in and spent from a Miller Trust. Seek guidance from a qualified elder law attorney to avoid having the trust disqualified.
