As a Senior Real Estate Specialist, Nancy & I want to inform you that effective October 1, 2020, NYS will extend the so-called “Look Back Period” from 30 days to 2.5 years on asset transfers prior to Community (Home Care) Medicaid applications.
This leaves approximately 2 weeks for people to protect their homes and other assets thereby avoiding the imposition of the longer Look Back and resultant Penalty Period. The current 5 year Look Back period on transfers prior to Nursing Home Medicaid applications is also widely expected to be lengthened to 7 years. Planning accomplished under the current law will be grandfathered.
The best method to protect one’s home and other assets are to use a properly drafted trust. It should not be Revocable, because this does not confer any asset protection. It does not, however, have to be totally Irrevocable. The ideal trust will be strong enough to guard against long term care claims, general liabilities, and capital gains taxes while ensuring that the creator can make changes in time to come.
For questions about this or any other asset planning contact
Ann-Margaret Carrozza, Esq.