When I first spoke to the Rodriguez family in Brooklyn, their worries instantly felt familiar. Their mother’s health was declining, care at home was no longer safe, and the cost of a quality nursing facility was shocking. “What happens to our family’s home and savings if Mom needs Medicaid?” they asked. Like so many middle-income families in New York, their greatest fear was losing a lifetime of savings to long-term care costs.
You’re not alone if this rings true for your household. With nursing home care in New York easily costing $12,000 per month (or more), failing to plan ahead can wipe out everything you’ve built to pass on to your kids. At Alatsas Law Firm, we’ve seen these scenarios—and we know there are practical legal tools that can keep your family’s legacy intact.
Drawing on both experience and the best advice out there, here’s a guide (with real-life insights) to protecting your assets from long-term care costs—without losing sleep.
Understand Why Early Planning Is Essential
Many families wait until a health crisis hits before calling an attorney—by then, options are limited. New York’s Medicaid program is means-tested: if your assets or income exceed strict limits, you won’t get help until you “spend down” your resources, sometimes to as little as $30,000.
Most competitors, do a great job explaining the technical rules, but miss an important point: the sooner you start, the more you can protect. Five years before care is ideal—that’s the “look-back” window Medicaid uses to scrutinize asset transfers. Planning ahead gives you the flexibility to choose the best combination of strategies, not just one rushed move.
Real-life snapshot: The Rodriguez family started planning after their mother’s first fall. They had time to create a trust, keep the family home, and safeguard savings for her grandchildren—none of that would have been possible in a last-minute crisis.
Use Trusts to Shield Assets
Not all trusts are created equal. A simple revocable living trust offers no real protection from long-term care costs—it’s invisible to Medicaid. What you need is a “Medicaid Asset Protection Trust” (MAPT). Here’s how it works:
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MAPTs transfer ownership of your home and certain investments to a carefully structured trust, managed by someone you trust (often an adult child). You can continue living in your home, but after five years, Medicaid no longer counts its value when determining eligibility.
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Irrevocable means control: Once the trust is set up, assets can’t be reclaimed directly. This sounds scary, but a well-designed trust can allow for some flexibility and continued income.
At Alatsas Law Firm, we help Brooklyn and Staten Island families design MAPTs that fit their values and unique family situations—sometimes mixing in provisions for grandchildren or special needs heirs.
Common myth: Some websites, like LegalZoom, gloss over the details and risks of trusts. With the right legal advice, trusts are not just for the super-wealthy—middle-income families stand to benefit the most.
Consider Medicaid-Compliant Annuities and Spend-Down Strategies
A Medicaid-compliant annuity lets you convert excess cash into an income stream, making you immediately eligible for Medicaid while preserving funds for your spouse or heirs. This tactic works best for married couples when one partner needs care and the other plans to remain in the community.
Other spend-down options: Updating the house (new roof, accessibility modifications), prepaying funeral expenses, or making essential purchases right before applying for Medicaid can all benefit your family while trimming accessible assets.
Pro tip: Work closely with an attorney who knows New York-specific rules—what’s allowed in Texas or Florida may not fly in NYC.
Don’t Go It Alone: Why Legal Guidance Matters
A shocking number of families try to Google their way through Medicaid planning (we see you, Trust & Will readers!). But without professional help, it’s surprisingly easy to make costly mistakes:
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Gifted assets within five years can trigger long periods of ineligibility for Medicaid.
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Even a minor paperwork error can delay benefits or expose savings to “estate recovery” after a loved one passes away.
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Each family’s situation is different—the family business, a disabled child, or multi-generational living arrangements can all complicate planning.
At Alatsas Law Firm, we combine three decades of Brooklyn-based experience with personal, compassionate guidance—so you never feel lost in legal jargon. We take time to explain each step and adapt solutions to your needs.
Protect the Family Home—Don’t Fall for Quick Fixes
Your house is more than numbers on a deed—it’s family, security, and years of memories. Some firms recommend simply gifting your home to the kids. This can create major problems:
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Unexpected taxes: Your children may owe capital gains taxes if they sell the home.
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Loss of control: If your child divorces or faces creditors, the home could be at risk.
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Medicaid penalties: Improperly gifting property without the right trust can result in losing eligibility.
A Medicaid Asset Protection Trust, set up early, is usually the safest way to keep your home in the family.
Brooklyn family story: The Singh family came in after dad’s stroke. By using a trust rather than an outright gift, their parents stayed in their home, avoided costly penalties, and eventually passed the property on with peace of mind.
Every Family Deserves Security and Dignity
It’s easy to feel overwhelmed by the rules, the acronyms, and the fear of losing everything. But every month, we help families just like yours use smart, straightforward strategies to protect their assets, qualify for needed care, and keep their dignity.
If you’re worried about nursing home costs, you don’t have to figure it out alone. Reach out to Alatsas Law Firm for a personalized consultation—let’s make sure your family’s legacy and future stay right where they belong: in your hands.
Have questions or want to share your story? Comment below, or sign up for our next free estate planning workshop designed just for Brooklyn and Queens families. We’re here for you, every step of the way.
Alatsas Law Firm: Protecting your family, your home, and your legacy—right here in Brooklyn.
