Medicaid Planning Attorney in Montague, MI
30+ Years of Medicaid Planning Experience in West Michigan
How Medicaid Planning Works in Michigan
Long-term care planning gives your family options before a Medicaid crisis forces a decision under pressure, and it gives you options even after that crisis has already started. The Law Office of David E. Waterstradt has spent more than 30 years helping Montague families and the rest of West Michigan navigate Michigan's Medicaid eligibility rules, protecting assets while still securing the coverage a loved one needs. The earlier that planning starts, the more strategies are available, but a plan built after care has already begun still has real options on the table.
Exempt vs. Non-Exempt Assets in Michigan Medicaid Planning
Not everything you own counts against you when applying for Michigan Medicaid. Assets fall into two categories: exempt assets, which you keep regardless of eligibility, and non-exempt assets, which generally must be spent down first. Your primary home, one vehicle, personal belongings, a prepaid irrevocable funeral contract, and life insurance up to a combined $1,500 in face value all qualify as exempt. A single applicant can also keep up to $9,660 in cash or other countable assets, with everything above that threshold subject to spend-down unless it gets legally protected first through a trust, an annuity, or by converting it into an exempt asset.
Medicaid Planning Options for Single Applicants
Being a single applicant does not mean you have to lose everything above the Medicaid asset limit. A short-term Medicaid-compliant annuity is one possible strategy: part of your non-exempt assets may be gifted, creating a Medicaid penalty period, while the remaining assets fund an annuity designed to provide income throughout that same timeframe. After the annuity payments are completed, Medicaid eligibility can begin, and the gifted assets may still help support your family or pass to your heirs. Because these strategies require careful timing and calculations, they should be handled with guidance from an experienced Medicaid planning attorney rather than attempted on your own.
Planning Ahead With a Trust
If long-term care isn't an immediate need, an irrevocable trust opens up more protection than crisis planning allows. Assets transferred into this kind of trust, often with your children named as beneficiaries, stop counting against Medicaid eligibility once five years pass without a long-term care application, known as the look-back period. You can often remain the trust's income beneficiary during that time, so the assets are protected without cutting off what they provide you in the meantime. Married couples have a similar option built into a testamentary trust within an estate plan, protecting assets for a surviving spouse without triggering that same five-year wait.
30+ Years of Elder Law Experience in West Michigan
With more than 30 years of experience as a Certified Elder Law Attorney, David Waterstradt has helped Montague families and communities throughout West Michigan build Medicaid strategies suited to their specific situation, not a generic template. Whether your family is planning years ahead or responding to a care need that's already underway, the approach starts with understanding exactly what you have and what you're trying to protect. Every family's assets, health situation, and timeline look different, which is why the first step is always a conversation rather than a form to fill out. Schedule a consultation today to learn more about Medicaid planning in Montague, MI and the strategies available to your family.