New Jersey Medicaid planning is a legal and financial strategy designed to help individuals qualify for Medicaid benefits while preserving as many of their assets as possible. Medicaid is a federally funded program administered by each state (known as NJ FamilyCare in New Jersey) that provides health coverage to individuals with limited income and resources.
In the context of long-term care, Medicaid can cover expenses like nursing home stays, assisted living, or in-home care. However, qualifying is not as simple as filling out an application. There are strict income and asset eligibility requirements, and improper planning can result in disqualification or costly delays.
Medicaid planning helps families legally navigate these requirements to ensure access to care without sacrificing their entire life savings. By planning ahead, time can be better spent with your loved-one.
Who Needs Medicaid Planning?
New Jersey Medicaid planning is crucial for:
- Older adults approaching retirement age, especially those without long-term care insurance.
- Families with a loved one who may need nursing home or in-home care in the future.
- Individuals with chronic conditions who may require long-term care down the line.
Even if you don’t need care right now, planning ahead can make all the difference.
Who Is Eligible for Medicaid Long-Term Care in New Jersey?
To qualify for Medicaid long-term care benefits in New Jersey, an applicant must meet specific criteria:
- Residency: Must be a New Jersey resident.
- Medical Need: Must require long-term care services (such as in a nursing home or assisted living facility).
- Income and Asset Limits: Must fall within the income and asset thresholds set by the state. As of 2025, the individual asset limit is typically around $2,000, athough rules differ for married couples and vary depending on the type of care.
BEWARE: Medicaid has a five-year look-back period meaning that any transfers or gifts made during the five-year period prior to a Medicaid application being made are scrutinized and may result in penalties or the delay in benefits. This is one reason it is very important to do your Medicaid planning well before you actually need the benefits of Medicaid.
When Should You Start Medicaid Planning?
The best time to start Medicaid planning is at least five years before long-term care is needed. Early planning allows for the greatest range of options and maximum asset protection. That said, even if care is needed immediately, crisis planning may still protect some assets, so it’s never too late.
Get Help with New Jersey Medicaid Planning
Medicaid planning is complex and deeply personal. Every family’s situation is unique, and having trusted legal guidance is essential.
If you have any further questions about Medicaid planning in New Jersey, please contact Ward, Shindle & Hall to get help with your options, protect your assets, and secure the care you deserve.
