The term, Medicaid planning, encompasses a wide variety of services provided by an equally wide variety of professionals and volunteers. A general definition of Medicaid planning is any assistance provided to a potential Medicaid applicant in advance of and in preparation for their Medicaid application. Medicaid planning can be as simple as assistance with the collection and preparation of documents or as complicated as a complete re-structuring of one’s financial assets.

Much of the complexity associated with Medicaid planning occurs when an individual’s monthly income or resources are over the financial eligibility limits. In some states, income can be converted into Qualified Income Trusts, also called Miller trusts, and in other states, persons can “spend down” their income on medical expenses via the Medically Needy Pathway. When persons have excess resources, countable resources can be converted into non-countable ones, such as an Irrevocable Funeral Trust. Many of these transactions require legal and / or financial expertise. For example, in states that do not allow seniors to convert their excess income into Miller trusts, doing so may result in Medicaid ineligibility. Furthermore, some states may allow an alternative option, such as a Pooled Income Trust.

One other major complicating factor is when one spouse requires long-term care and the other can live independently. How are their incomes and assets divided? This is a challenge many Medicaid Planners strive to overcome.