GRENIER, HUMES & NOLAN LLP
ATTORNEYS AND COUNSELORS AT LAW
Legal Alert
January 4, 2006
Long Term Care and Medicaid Planning Matters
Dear Client:
Several weeks ago, Congress passed legislation that would dramatically change the traditional long term care and Medicaid planning rules. It is anticipated that, after certain minor modifications, this legislation, the “Deficit Reduction Act of 2005” (the “Act”), will likely be signed into law within the next several weeks. The existing planning techniques will apply for asset transfers prior to the Act being signed into law.
The Act will make it more difficult to qualify for Medicaid. The most significant changes include an increase in the “look-back” period and the calculation of the period of ineligibility due to asset transfers. These changes will make long term care and Medicaid planning fundamentally different going forward. While the Act has not yet been signed into law, any opportunity to make transfers prior to receiving Medicaid may be lost or significantly diminished if it is signed by the President in its present form.
Therefore, if you, or someone you know, have been thinking about implementing a long term care plan to protect your assets, it would be prudent for you to proceed prior to the Act being signed into law.
If you would like more information regarding the Act, you can read the full text of the Act at http://rules.house.gov/109/text/s1932cr/109s1932_text.pdf, or if you have any questions, please feel free to call us at 631-694-2626.
Very truly yours,
Grenier, Humes & Nolan LLP