Can a Life Estate Deed Shield My Home From Medicaid in New York? - Seth Schlessel

BSPE Legal Marketing Podcast

From Schlessel Law PLLC - In this episode, we explore the question, "Can a Life Estate Deed Shield My Home From Medicaid in New York?" focusing on how life estate deeds fit into Medicaid planning in New York. For those seeking to preserve homeownership while meeting Medicaid eligibility, a life estate deed can be a strategic tool. By allowing homeowners to retain the right to live in their property while transferring ownership to a remainderman, life estates can potentially exclude the home from being counted as an asset during Medicaid’s eligibility assessment, provided the transfer satisfies the state’s look-back period requirements.
We dive into the critical details of Medicaid's look-back period, asset protection, and how New York’s Department of Health assesses life estates during the Medicaid application process. Understanding these factors is key, as improper structuring or timing of a life estate deed can lead to Medicaid penalties, affecting eligibility. Schlessel Law PLLC provides guidance on how life estates interact with Medicaid rules, ensuring that homeowners and their families are prepared to navigate the legal and financial implications of asset transfers, property valuations, and compliance with New York Medicaid laws.
Listeners will also learn about the role of a grantor and remainderman in estate planning and the benefits and challenges of using a life estate deed for long-term care planning. While a life estate deed may help avoid probate and reduce estate recovery risks, it is important to consider potential complications, such as the tax implications for heirs and the impact on Medicaid eligibility. Each of these factors can affect both Medicaid applications and the overall estate planning strategy.
Finally, we examine common pitfalls, including potential issues if the remainderman's circumstances change or if there is a need to sell the property before the life tenant’s passing. With thoughtful planning, a life estate deed can offer asset protection, tax benefits, and long-term stability for families. At Schlessel Law PLLC, we are dedicated to helping clients develop tailored Medicaid and estate planning solutions that align with New York’s legal requirements. Contact us today to learn how we can assist with your estate planning needs.
Schlessel Law PLLC
34 Willis Ave Suite 300, Mineola, NY 11501, United States
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