Medicaid Planning Attorney in Manistee, MI
Over 30 Years of Experience With Medicaid Law in West Michigan
What Is Medicaid Planning?
Medicaid planning protects your family's assets while helping a loved one qualify for long-term care coverage, whether that need is years away or already here. The Law Office of David E. Waterstradt helps individuals and families in Manistee and throughout West Michigan work through Michigan's Medicaid rules, using strategies built around more than 30 years of elder law experience. Long-term care costs add up quickly once a nursing home stay begins, which is exactly why a plan built ahead of time, or even a plan built after care has already started, makes such a difference in what your family keeps.
What Counts as an Exempt Asset in Michigan
Michigan Medicaid separates what you own into two categories: exempt assets you can keep and non-exempt assets that generally have to be spent down before you qualify. Exempt assets include your primary home, one vehicle, personal belongings, a prepaid irrevocable funeral contract, and life insurance with a combined face value of $1,500 or less. Everything else counts toward eligibility, up to a limit of $9,660 in cash or other countable assets for a single applicant. The real work of Medicaid planning is figuring out which non-exempt assets can be legally converted into exempt ones or protected through a trust or annuity before that spend-down requirement takes more than it has to.
Protecting Assets as a Single Applicant
Being single doesn't mean giving up everything above the asset limit. One option is a short-term Medicaid-compliant annuity: roughly half of your non-exempt assets are gifted, which triggers a Medicaid ineligibility period, while the other half funds an annuity structured to provide income during that exact period. Once the annuity pays out, eligibility follows, and the gifted portion is left to cover home expenses or eventually pass to your heirs. It's a strategy that has to be calibrated carefully so the math works out, which is exactly the kind of planning an experienced Medicaid attorney handles rather than something to attempt without guidance.
Does Medicaid Take Your House in Michigan?
Your home is an exempt asset while you're alive, which means it doesn't count against you when applying for Medicaid. That protection doesn't necessarily extend past your lifetime, though. Michigan can pursue estate recovery against a probate estate after death, which can include a home that's still part of the probate process, even though that same home was exempt during your lifetime for eligibility purposes. Planning ahead, through the right trust or transfer strategy, is what actually keeps a home out of reach of estate recovery rather than assuming the exemption during life covers what happens afterward.
Experienced Medicaid Planning Attorney Serving Manistee
Certified Elder Law Attorney David Waterstradt has spent more than 30 years helping Michigan families protect assets while qualifying for the Medicaid coverage they need, serving Manistee and the rest of West Michigan with the same strategic approach, regardless of whether planning starts years in advance or after a loved one is already receiving care. Every consultation starts with a full review of your specific assets and family situation, since the right strategy depends on those details rather than a one-size-fits-all approach. Schedule a consultation today to find out which strategies actually apply to your family.