This is a 4-Part Series on Medicaid Planning and the Lookback
The 5-Year Medicaid Lookback in New Jersey – Plain-English Guide
If you’ve started looking into
Medicaid and long-term care in New Jersey, you’ve probably heard someone say:
“Be careful, there’s a 5-year lookback.”
Most people nod, pretend they understand, and then quietly panic later.
This post is meant to take the fear (and mystery) out of the 5-year lookback rule, show you how it actually works, and explain how smart planning with Simon Law Group LLC can help you protect your home and savings while still qualifying for the care you need. *
**** This post is not legal advice. Please seek qualified legal advice from an Attorney when handling potential estate planning or medicaid planning. ****
What Is the Medicaid 5-Year Lookback?
When you apply for long-term care Medicaid (nursing home, assisted living, or certain in-home services), New Jersey doesn’t just look at what you own today.
The state also looks back at your financial history for the last 5 years (60 months) to see:
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Did you give away money or property?
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Did you
transfer assets to family, friends, or a
trust for less than fair market value?
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Did you add someone else’s name to your house, bank account, or investments?
If the answer is yes, Medicaid may treat those transfers as if you were trying to qualify for benefits by giving away your assets, and it can impose a penalty period – a window of time when Medicaid will not pay for your care.
Stay tuned for Part 2 where we discuss what Medicaid looks at during the lookback period.
If you're looking for more information about Estate Planning or Medicaid Planning or Asset Protection, contact an experienced Estate Planning Attorney, Simon Law Group LLC for a free consultation by calling 800-709-1131 or TEXT us at 908-864-4450
**** This post is not legal advice. Please seek qualified legal advice from an Attorney when handling potential estate planning or medicaid planning. ****
