Estate Planning & the Importance of Medicaid Planning in New Jersey’s 5-Year Lookback
Estate planning is not just about deciding who inherits your assets—it’s also about protecting your financial security as you age. For New Jersey residents, Medicaid planning has become a critical part of effective estate planning, especially for those concerned about the rising cost of long-term care. With nursing home care in New Jersey often exceeding $10,000 per month, failing to plan ahead can put your life savings at risk.
One of the most important rules to understand is New Jersey’s 5-year Medicaid lookback period. When you apply for Medicaid to help pay for nursing home or assisted-living care, the state reviews all financial transactions made within the past 60 months. If you have transferred assets, gifted money, or moved property out of your name during this period, Medicaid may impose a penalty period of ineligibility.
This is why Medicaid planning must be done well in advance, ideally long before care is needed. Working with an experienced estate planning attorney in New Jersey can help you legally protect assets while ensuring eligibility for Medicaid when the time comes. Tools such as Medicaid Asset Protection Trusts, carefully structured gifts, and strategic spending can preserve wealth while complying with New Jersey regulations.
Incorporating Medicaid planning into your broader estate plan also ensures your home, savings, and investments are shielded for your spouse, children, or other beneficiaries. Without this planning, families often find themselves depleting assets quickly to pay for care, leaving little to pass on.
Another key benefit of early Medicaid planning is peace of mind. You gain the security of knowing that your long-term care needs will be addressed, your assets protected, and your loved ones spared the financial and emotional toll of crisis planning.
For New Jersey residents, the message is clear: Estate planning and Medicaid planning go hand in hand. By understanding the 5-year lookback and preparing early, you can secure your future and safeguard your legacy.
If you're unsure where to begin, consult with our Estate Planning and Medicaid Planning attorneys in Simon Law Group LLC in New Jersey to discuss your options and build a plan tailored to your needs.
Should you wish to get your questions answered and set up a consultation, call us at 800-709-1131 or you can text us at 908-864-4450.
