📌 The Medicaid Dilemma
If you or a loved one needs long-term care in New York, you may be shocked at the costs: nursing homes in Brooklyn can exceed $150,000 per year. Many families fear they’ll have to spend their life savings before they qualify for Medicaid.
The good news? With smart legal strategies, you can qualify for Medicaid without going broke—and without risking your home or legacy.
In this post, the Medicaid planning lawyers at Alatsas Law Firm explain how to qualify for Medicaid in New York and protect your assets using lawful, strategic planning.
🧠 What is Medicaid Eligibility in New York?
Medicaid is a joint federal and state program that covers health care for low-income individuals, including long-term nursing home care. But to qualify, you must meet strict income and asset limits.
As of 2025, the general financial criteria for an individual applying for Institutional Medicaid are:
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Income Limit: $1,732/month
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Asset Limit: $31,175
For married couples where one spouse is applying:
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Community Spouse Resource Allowance: Up to $154,140
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Monthly Maintenance Needs Allowance: Up to $3,853.50
📌 These limits are updated annually, and exceeding them—by even $1—can result in denial or costly penalties.
🔗 See our current guide to NY Medicaid limits »
🚧 The Medicaid "Spend Down" Misunderstanding
Many assume they must “spend down” their life savings before applying. This often means paying out-of-pocket for care until they meet the limits—an outcome that wipes out decades of savings in just a few years.
But this is a myth—and where experienced Medicaid planning attorneys can make all the difference.
🔐 What Legal Strategies can you use to Protect Your Assets?
At Alatsas Law Firm, we use time-tested tools to help Brooklyn families protect what they’ve worked for. Key strategies include:
1. Medicaid Asset Protection Trusts (MAPTs)
A MAPT allows you to transfer assets (like your home) into a trust that is managed by someone else (usually your children). As long as this is done at least 5 years before applying, the assets won’t count against your eligibility.
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Protects your home and savings
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Avoids Medicaid estate recovery
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Retains income rights in many cases
🔗 Learn more about MAPTs in New York »
2. Spousal Refusal
If one spouse requires care but the other is healthy and living at home, New York allows a legal "spousal refusal." This protects the community spouse from being forced to pay for care.
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Assets can be shifted to the community spouse
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The sick spouse can still qualify for Medicaid
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Effective and legal under NY rules
3. Pooled Income Trusts
For applicants with too much monthly income, a pooled income trust allows excess income to be directed into a special account managed by a non-profit. This income is then used to pay bills, rent, and utilities.
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Keeps you Medicaid-eligible
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Preserves quality of life
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Especially useful for disabled individuals living at home
🔗 Get details on Pooled Income Trusts here »
4. Gifting Strategies
Gifting is possible, but tricky. If you gift assets within 5 years of applying for Institutional Medicaid, you’ll face penalties and delays.
We help design legal gifting strategies that:
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Transfer assets outside the look-back window
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Use exemptions for caregiver children or disabled family members
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Avoid unnecessary penalties
🧾 What Is the “5-Year Look-Back”?
New York Medicaid uses a 5-year look-back to prevent people from giving away assets just before applying. Every transfer made in the 60 months before your application is scrutinized.
If Medicaid finds a non-exempt transfer, they calculate a penalty period—a length of time during which you must privately pay for care.
This is why early planning is critical. We help families prepare well in advance, ensuring a smooth, penalty-free application.
🔗 Read our guide to the 5-Year Look-Back Rule »
🏡 Can You Keep Your Home?
Yes—but not automatically. Your home may be considered an exempt asset while you’re alive—but it’s still at risk after your death through estate recovery.
That’s why tools like the MAPT are vital. They ensure that:
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Your spouse can continue living in the home
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Your children can inherit without probate
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The state won’t reclaim your property
📌 The primary residence is not automatically safe—proper titling and trust placement are key.
📑 What are some Common Mistakes in Medicaid Planning?
Avoid these common pitfalls:
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Applying before structuring your finances
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Making large gifts during the look-back period
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Naming yourself trustee of your own MAPT
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Failing to update beneficiary designations
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Waiting until you're hospitalized to start planning
🧩 How an experienced Brooklyn Medicaid Attorney Helps
At Alatsas Law Firm, we don’t just fill out forms—we build long-term strategies. Our Medicaid planning services include:
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Asset review and preservation strategies
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Creation of trusts and legal documents
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Coordination with caregivers and financial planners
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Filing and follow-through on Medicaid applications
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Appeals and crisis planning if needed
🔗 Explore our Medicaid Planning Services »
💬 Real Client Story
“We thought we had to spend everything before mom could get help. Teddy showed us how to protect her house and savings—while getting her the care she needed.”
— Janelle M., Midwood, Brooklyn
📞 Take Action Today: The Sooner You Plan, the More You Save
Medicaid planning isn’t just about getting benefits—it’s about protecting your dignity, your home, and your family’s future.
If you wait until a health crisis, your options are limited. But with the right plan, you can qualify for care without sacrificing what matters.
📍 Serving families across Bay Ridge, Dyker Heights, Bensonhurst, and beyond.
📞 Call (718) 233-2903 or
🔗 Schedule a consultation with Alatsas Law Firm »
