West Palm Beach Medicaid Planning Attorney

Understanding Medicaid Planning in West Palm Beach

Medicaid planning is a critical aspect of financial and estate planning for individuals who anticipate needing long-term care. In Florida, Medicaid can help cover the high costs of assisted living facilities or completely pay for nursing home care, but qualifying for benefits requires careful financial preparation. Without proper Medicaid planning, many individuals risk spending down their life savings to pay for care before they become Medicaid eligible. The Medicaid plainning process can be complex, but an experienced West Palm Beach Medicaid planning attorney can help re-structure assets and income to maximize eligibility while preserving assets for loved ones.

How Medicaid Works in Florida

Medicaid is a state and federally funded program designed to assist poor, low-income, individuals with medical expenses, including long-term care costs. In Florida, Medicaid covers various services such as nursing home care, in-home assistance, and assisted living facilities. However, strict financial and medical eligibility criteria determine who qualifies for benefits. Florida Medicaid eligibility involves evaluation of medical needs as well as setting both income and asset limits. Exceeding these limits can result in disqualification from benefits.

To qualify for Florida Medicaid for long-term care, an individual must meet the following criteria:

• Income Limits: As of January 1, 2025, an individual applicant’s income cannot exceed $2,901.00 per month. If the applicant is married and their spouse is not applying, different rules apply.
• Asset Limits: Florida Medicaid has an asset limit of $2,000 for a single individual and $157,920.00 for the  married spouse (if only one spouse is applying). Certain assets, such as a primary home (under certain conditions), one vehicle, and personal belongings, are exempt.
• Medical Necessity: The applicant must require nursing home-level care or other qualifying medical assistance.

Without proper planning, many individuals with moderate incomes and assets might not initially qualify for Medicaid, forcing them to pay out of pocket for costly long-term care. With proper planning, the assets can be retained to be used for the applicant’s benefit during their lifetime while the applicant also receives Medicaid and SSI (income) from the government.

Common Medicaid Planning Issues

Many people assume that Medicaid is only for low-income individuals. However, without planning, middle-class families often find themselves depleting their life savings before qualifying. Some of the most common Medicaid planning challenges include:

1. Asset Protection & Spend Down Strategies

One of the biggest issues families face is reducing their countable assets to meet Medicaid’s eligibility limits. Simply giving away assets to qualify can trigger penalties, so it is crucial to implement legal strategies such as:

• Converting countable assets into exempt assets
• Using the appropriate irrevocable trusts
• Establishing a Medicaid-compliant annuity
• Paying off debts or home improvements

2. Medicaid Look-Back Period

Florida enforces a five-year look-back period, meaning Medicaid reviews any asset transfers or gifts made within five years before applying (Transfers between married spouses who are both U.S. citizens are exempt). Any improper transfers can result in penalties, delaying eligibility. An attorney can help implement strategies to protect assets while complying with Medicaid rules.

3. Income Qualification Issues

If an applicant’s income exceeds the Medicaid threshold, they may still qualify through the use of a Qualified Income Trust (QIT), also known as a Miller Trust. This trust allows excess income to be placed in a restricted account, ensuring the applicant meets Medicaid’s requirements. Proper setup and management of this trust is critical to maintaining eligibility.

4. Impact on a Healthy Spouse (Community Spouse Protection)

For married couples, Medicaid has rules in place to prevent the healthy spouse (community spouse) from becoming impoverished. The Spousal Impoverishment Protection Law allows the non-applicant spouse to retain a portion of the couple’s income and assets. However, navigating these rules requires legal expertise to ensure the best financial outcome.

5. Nursing Home & Long-Term Care Costs

West Palm Beach has a high cost of living, and long-term care expenses are significant. Without Medicaid, nursing home care can cost between $8,000 and $12,000 per month. Many individuals mistakenly believe that Medicare will cover these costs, but Medicare only provides limited short-term coverage. Medicaid planning ensures that individuals can afford quality care without exhausting their savings.

How Florida Law Affects Medicaid Planning

Florida’s Medicaid program follows federal guidelines but has unique state-specific regulations that impact eligibility and planning strategies. Some key aspects of Florida law that affect Medicaid planning include:

• Homestead Exemption: In Florida, a primary residence is often exempt from Medicaid asset calculations if it is valued under $730,000 (2025 limit) and the applicant or their spouse lives in it.
• Irrevocable Trusts: Florida allows the use of Medicaid Asset Protection Trusts (MAPTs) to legally shield assets while complying with Medicaid rules. However, these trusts must be carefully structured to avoid disqualification.
• Lady Bird Deeds: This type of enhanced life estate deed allows a property to pass to heirs upon death without going through probate, preserving Medicaid eligibility while maintaining control over the property.
• Income Trusts: A Miller Trust can be used to divert excess income and ensure eligibility for Medicaid long-term care benefits.

Navigating these laws requires a deep understanding of Medicaid’s complex rules, which is why working with an experienced West Palm Beach Medicaid planning attorney is essential.

How Kitroser Lewis & Mighdoll Can Help with Medicaid Planning

At Kitroser Lewis & Mighdoll, we understand that Medicaid planning is about more than just eligibility—it’s about preserving your financial future while ensuring access to necessary care. Our experienced attorneys offer tailored solutions to help West Palm Beach residents navigate the Medicaid application process and protect their assets.

Our Medicaid Planning Services Include:

• Asset Protection Planning: We help clients structure their finances to meet Medicaid’s strict eligibility requirements while preserving as much wealth as possible.
• Medicaid Application Assistance: The application process can be overwhelming, and mistakes can lead to delays or denials. We handle all aspects of the process to ensure a smooth submission. Unfortunately, applications and supporting documentation are often lost after submission so follow-up and documentation is often vital for a successful outcome.
• Trust & Estate Planning: We create Medicaid Asset Protection Trusts, Special Needs Trusts, and other legal tools to safeguard assets.
• Spousal Protection Strategies: Our team ensures that a non-applicant spouse retains the necessary assets and income to maintain financial stability.
• Crisis Medicaid Planning: If a loved one needs immediate nursing home care but doesn’t qualify for Medicaid, we offer emergency planning strategies to accelerate eligibility.

With decades of experience, Kitroser Lewis & Mighdoll is committed to helping clients secure Medicaid benefits while protecting their legacies. We take a proactive approach to Medicaid planning, ensuring that families are prepared before the need for long-term care arises.

Take Control of Your Future with Medicaid Planning

Medicaid planning is an essential part of financial security for seniors and individuals requiring long-term care. Without a well-structured plan, families risk losing their assets and facing financial hardship. By working with a West Palm Beach Medicaid planning lawyer, you can ensure that you or your loved ones receive the necessary care without unnecessary financial burdens.

If you need assistance with Medicaid planning, Kitroser Lewis & Mighdoll is here to help. Contact us today for a consultation to discuss your options and secure your future.