When most people think about estate planning, they picture wills, trusts, and a discussion about who gets the family cabin. Medicaid planning might seem like something you only worry about after a health crisis hits.
But can Medicaid planning be part of your estate plan? Absolutely. When done right, it can help protect assets, preserve your independence, and prevent families from being blindsided by long-term care costs down the road.
Why Medicaid Is Important in Estate Planning
Long-term care is expensive. In Wisconsin, the cost of nursing home care can easily exceed $100,000 per year. Medicare does not cover extended stays.
For many, their private insurance falls short. This is where Medicaid, known as BadgerCare Plus in Wisconsin, can help.
Medicaid is a needs-based program. Applicants must meet strict income and asset limits to be eligible. Without planning, many families are forced to spend down nearly all their assets before qualifying. In turn, that leaves little to pass on to a spouse or children.
How Medicaid Planning Fits Into an Estate Plan
A strong estate plan looks at what you own, who you want to protect, and how to minimize stress and financial loss.
Medicaid planning is just another part of those goals. With certain planning strategies, it can help shield assets from being counted for Medicaid eligibility. You may need to establish trusts, plan strategic gifting, or restructure property ownership.
But remember that timing is important. Wisconsin follows a 60-month look-back period. When you apply, Medicaid always reviews financial transactions made in the past five years. With planning, you have options.
You also want to plan early to protect your spouse. Wisconsin does follow federal spousal impoverishment rules. Fortunately, that means a healthy spouse will not be left penniless when the other spouse needs long-term care. A managed estate plan can help make sure the at-home spouse keeps sufficient income and assets to maintain their quality of life. Without planning, even these protections can fall short.
Finally, Medicaid planning should not happen in isolation. You want it to align with your will, powers of attorney, and any trusts you have created. If you are not careful, those well-meaning estate documents can accidentally undo Medicaid eligibility or create delays.
When Should You Start Medicaid Planning?
You need to plan before you need it. This type of planning should be done years in advance, while you are healthy and have maximum flexibility. However, the next best time is right now. Even late-stage or crisis planning may offer some options depending on your situation.
You never want to DIY your way through it. Medicaid rules are complicated, and Wisconsin-specific regulations matter. Reach out to a trusted Wisconsin estate planning lawyer for your next steps.
Why Work with an Experienced Wisconsin Estate Planning Attorney
You want to make sure your Medicaid planning is legal and will not face any hurdles. Mistakes can result in penalties, loss of benefits, or unintended consequences for your family.
An experienced estate planning attorney can:
- Analyze your financial picture and long-term goals
- Identify Medicaid-compliant strategies tailored to Wisconsin law
- Coordinate Medicaid planning with your estate documents
- Help you avoid common and expensive missteps
You don’t want to create estate plans that look good on paper. You need them to work when life takes unexpected turns.
We Can Assist with All Medicaid-Related Planning
Can Medicaid planning be a part of your estate plan? Yes. In fact, it is recommended to add this important piece to your estate puzzle.
If you’re thinking about estate planning, it may be time to have that conversation now, while you still have choices. At Collins Law Firm, we are ready to help you create a plan that works for your family. Contact us today for a consultation.