How to Keep $150K+ While Qualifying for Medicaid Nursing Home Care

Facing nursing home costs of $9,000–$15,000 per month? There’s a proven legal strategy that allows married couples to protect $150,000 or more in assets—while still qualifying for Medicaid coverage.

Estate planning attorney Harry Margolis, author of “Get Your Ducks in a Row,” explains how Medicaid-compliant immediate annuities work—and why this little-known Medicaid annuity planning strategy could safeguard your family’s life savings.

KEY POINTS:

Medicaid asset limits: Why couples must spend down to $2,000 (for the nursing home spouse) and $150,000 (for the healthy spouse)

Immediate annuities explained: How they legally convert countable assets into protected income

The 5-year lookback rule: Why it doesn’t apply to Medicaid-compliant annuities

Countable vs. non-countable assets: What truly impacts Medicaid eligibility

Gifting traps: Why transferring assets to children can backfire catastrophically

Compliance rules: What your annuity must include to qualify under Medicaid

Retirement pitfalls: How IRAs and 401(k)s can trigger hidden tax traps during spend-down

TIMESTAMPS

0:00 – Introduction: The Medicaid spend-down crisis
1:15 – What is an immediate annuity?
3:22 – How spouses can protect $150K+ legally
5:40 – The 5-year lookback rule explained
7:18 – What assets count toward Medicaid limits
9:45 – Single vs. married: Different strategies
11:30 – Critical mistakes to avoid
13:15 – Why you need a local elder law attorney

THE BOTTOM LINE

With proper Medicaid annuity planning for married couples, the healthy spouse can maintain long-term financial security through guaranteed income—while Medicaid covers costly nursing home care. But if you make a mistake, you could lose everything.

IMPORTANT DISCLAIMER

Medicaid rules vary significantly by state. This video provides general educational information only. Always consult a qualified elder law attorney in your state before implementing any Medicaid planning strategy.