Medicaid Planning & Long-Term Care –
Protecting Your Assets in NJ
Why Plan for Long-Term Care Costs?
The average cost of a nursing home in New Jersey is now over $150,000 per year, and without careful planning, a lifetime of savings can disappear in just a few years. Medicaid (Title XIX) is the main government program covering long-term care, but qualifying means meeting strict income and asset requirements. Many families are surprised by how quickly expenses add up—and how easy it is to make costly mistakes with last-minute planning. That’s why proactive, informed Medicaid and long-term care planning is one of the most important steps you can take to protect yourself and your loved ones.
Understanding the Rules – Medicaid Eligibility in NJ
To qualify for nursing home Medicaid in New Jersey, you must meet financial eligibility rules: income limits, asset caps (often just $2,000 for a single applicant), and New Jersey’s “5-year look-back” on any gifts or asset transfers. For example, gifting $50,000 to children within five years before applying could trigger a penalty period, delaying care. The Medicaid application also requires proof of all income, bank accounts, investments, and any asset transfers during the look-back period. Knowing the rules—and how they’re applied locally—makes all the difference for families trying to avoid costly penalties.
Legally Protecting Your Home & Savings – Asset Protection Strategies
It’s possible to protect assets while qualifying for Medicaid, but it requires strategic planning. Options may include Medicaid spend-down strategies (such as paying off debts or improving your home), Medicaid Asset Protection Trusts (irrevocable trusts set up at least five years ahead), converting assets into exempt resources like prepaid funeral arrangements, or using certain annuities for married couples. Each approach must be tailored and carefully timed—mistakes can be costly, so legal guidance is essential for avoiding penalties and ensuring assets go where you intend.
Guiding You Through the Process – Medicaid Application Assistance
We know that the actual Medicaid application process itself is complex and can be overwhelming. We regularly guide families on what to expect and connect clients with trusted local firms that specialize in completing and submitting Medicaid applications. This ensures you receive the best support at every stage, from planning to final approval, while benefiting from our ongoing advice and coordination as needed.
Planning Ahead for Care Needs – Long-Term Care Planning
Long-term care planning is about more than Medicaid. It's important to review long-term care insurance options, understand how Veterans benefits may apply, and plan for the future before a crisis strikes. Early planning (often in your 50s or 60s) provides more flexibility, whether you’re married or single—factors like the community spouse resource allowance in NJ can make a big difference for couples. Estate planning tools such as strategic gifting can also be integrated for a more complete plan.
Questions We Hear Most Often
How do I qualify for Medicaid for a nursing home in NJ?
To qualify, you must meet both financial and medical eligibility rules set by New Jersey. This means having limited income and assets (usually under $2,000 for an individual) and needing nursing-level care as verified by the state.
What is the 5-year look-back for Medicaid in NJ?
Medicaid reviews all asset transfers and gifts made within five years of your application. If you gave away assets or sold property below fair market value, you may face a penalty period before Medicaid coverage begins.
Can I keep my house and still get Medicaid in New Jersey?
In many cases, your primary residence is exempt while you or a spouse live there. However, rules about home equity limits and estate recovery apply, so planning ahead is important.
How much can you gift your children without a penalty in NJ Medicaid?
Any gifts made within five years of applying for Medicaid may result in a penalty. There is no annual “safe” amount for Medicaid purposes, even though the IRS gift tax rules are different.
Is it ever too late to get Medicaid planning help?
Even if your loved one is already in a nursing home, it’s not too late—there are often still strategies to protect some assets or ensure proper benefits.
Local Expertise Matters – New Jersey Medicaid Planning
New Jersey’s Medicaid program (including Managed Long-Term Services and Supports, or MLTSS) comes with its own set of rules and updates. With decades of experience navigating these complexities, Gary Cornick’s firm brings the local insight families need for successful outcomes. We stay up to date on state changes so you can move forward with confidence, knowing your plan is built for NJ’s requirements.
Get Peace of Mind – Start Planning Now
Whether you’re just beginning to consider long-term care or your loved one is already in a nursing home, there may still be strategies to protect assets and secure the right care. The best outcomes come from planning early—but even in crisis, legal options exist. Contact the Law Offices of Gary Cornick to schedule a Medicaid planning consultation and get clear answers about your options today.