When it comes to protecting your assets and preparing for the possibility of long-term care, Medicaid can be a powerful tool. But unfortunately, there are a lot of myths out there that can lead you in the wrong direction—or worse, keep you from planning at all.
If you’ve ever heard someone say “Medicaid will take your house” or “you have to be broke to qualify,” you’re definitely not alone. And if those myths made you feel like you shouldn’t even bother planning? That’s exactly why this conversation matters.
Let’s clear the air. Here are some of the most common Medicaid planning myths—and the truths you really need to know if you’re serious about protecting what you’ve worked so hard for.

Myth #1: You Have to Be Completely Broke to Qualify for Medicaid

Reality: You don’t have to lose everything before you get help.
One of the biggest misconceptions is that Medicaid is only for people with absolutely no assets. While there are income and asset limits, there are also legal strategies you can use to qualify without spending everything you have.
For example, some assets—like your primary residence (up to a certain value), a car, and certain personal belongings—may be exempt. You can also set up trusts or use other tools that allow you to protect your savings for a spouse or future generations. The key is planning ahead. If you wait until you’re already in crisis, your options become a lot more limited.

Myth #2: Medicaid Will Automatically Take Your Home

Reality: You don’t automatically lose your home—but failing to plan could put it at risk.
Here’s where things get confusing. Medicaid doesn’t “take” your house while you’re alive and receiving benefits. However, the state can try to recover some of the costs it paid for your care after you pass away. This is known as “estate recovery.”
With the right planning—such as using a Medicaid Asset Protection Trust—you may be able to shield your home from being subject to estate recovery. So no, Medicaid won’t show up with a for-sale sign. But without planning, your home could be vulnerable down the road.

Myth #3: It’s Too Late to Plan If You’re Already in a Nursing Home

Reality: It’s never too late to explore your options.
Of course, earlier planning gives you more flexibility, but even if you or a loved one is already in a nursing home, there are still strategies available. This is often called “crisis planning.”
With the right legal guidance, you might be able to reposition assets or make transfers that help you qualify sooner—and save thousands in the process. The worst thing you can do is assume there’s no hope and spend everything out-of-pocket.

Myth #4: You Can Just Gift Everything to Your Kids and Be Done

Reality: Gifting without strategy can backfire—big time.
Medicaid coverage for full-time nursing home care has a five-year “look-back” period. That means they’ll review any asset transfers you’ve made in the past five years. If you gave away money or property during that time, you could be hit with a penalty period where you’re ineligible for benefits—even if you would otherwise qualify. Also New York State is planning to institute a three (3) year look-back period for Medicaid home care very soon.
This is why working with a professional is so important. There are right and wrong ways to make transfers, and the difference can be financially devastating.

Myth #5: My Will or Trust Takes Care of Everything

Reality: A basic will or trust isn’t enough for Medicaid planning.
Wills and revocable trusts are helpful tools for estate planning, but they don’t protect your assets from long-term care costs. If you want to safeguard your home, savings, or other assets, you’ll need to consider specialized planning—like an irrevocable Medicaid Asset Protection Trust.
The right legal structure can help you qualify for Medicaid while preserving your legacy. If you’re unsure whether your documents are doing enough, it’s probably time to review them with someone who focuses on elder law or Medicaid planning.

So, What Should You Do Now?

Whether you’re thinking about your own future or helping a parent navigate care options, you deserve peace of mind. The key is having a solid plan before a crisis hits. That’s where Medicaid planning comes in—it helps you protect your assets, make informed decisions, and ensure long-term care doesn’t drain everything you’ve worked for. Don’t wait until it’s too late. Talk with a trusted professional, like the team at Amoruso & Amoruso LLP, to create a strategy that fits your family’s unique needs.
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