Wood Law Group
Medicaid Planning in Nevada: What You Need to Know
Understanding Medicaid Planning in Nevada
As people age or face serious health issues, they may need long-term care, which can be extremely expensive. A private room in a nursing home can cost thousands of dollars per month, and even in-home care services add up quickly. Many families can’t afford these costs on their own, which is why Medicaid is so important—it helps cover a range of medical expenses, including the cost of nursing homes, assisted living, and in-home care.
However, Medicaid isn’t automatically available to everyone. The program has strict income and asset limits, meaning you (or your loved one) must meet specific financial requirements to qualify. If your income or savings exceed these limits, it means you are not eligible for Medicaid benefits, and you may have to pay for the relevant health costs out of pocket.
Fortunately, it doesn’t have to be this way. There are legal ways to structure your finances in a manner that allows you to qualify for benefits while preserving your savings. That’s what Medicaid planning is all about. There are several Medicaid planning strategies to choose from based on your circumstances. With the right one, you can protect your assets and still get the care you need.
However, Medicaid planning works best when it is done early, long before that level of care is actually needed. This is because some of those strategies require the transfer of assets to a different entity to stop them from being counted for Medicaid purposes. Such transfers are bound by strict time limits, and non-compliance with the relevant time limit would render the transfer and, thus, the planning strategy ineffective, which could affect your eligibility for benefits. So, if you’ve been considering Medicaid planning or putting off the process, the time to start is now.
At Wood Law Group, we guide individuals and families through every step of Medicaid planning. We can help you find effective solutions to protect your assets and preserve your Medicaid eligibility based on your unique circumstances.Our goal is to make sure you or your loved one gets the care you need without added stress.
Why Medicaid Planning Is Essential
Medicaid is a joint federal and state program that helps low-income individuals access healthcare. It covers essential services like doctor visits, hospital care, prescription medications, and long-term care. In Nevada, Medicaid is available to several groups, including:
- Low-income adults
- Pregnant women
- Children
- Seniors
- Individuals with disabilities.
The program has specific income and asset limits, and failing to meet them can prevent you from receiving benefits when you need them most, even if you fall within one of the above groups.
For example, for adults under 64 to qualify, their income must be at or below 138% of the Federal Poverty Level (FPL). Pregnant women can also only qualify if their income is below 165% of the FPL. As of January 2025, a single-person household’s income at 138% of the FPL per annum is $21 597. If you earn even one dollar above that as an adult under 64, you may not qualify for Medicaid, no matter how much you need it.
Asset Limits
In addition to income limits, Medicaid also considers assets when determining eligibility. Generally, a single individual is only allowed to own $2000 worth of assets/resources or less to qualify for Medicaid. In calculating Medicaid eligibility based on assets, it is important to note that not all assets affect eligibility. Some are considered countable, while others are exempt (non-countable).
Countable assets include:
- Checking and savings accounts
- Investments like stocks and bonds
- Secondary real estate (any property that isn’t a primary residence)
Exempt assets include:
- Primary residence (if the applicant or spouse lives there)
- One vehicle
- Household belongings and personal items.
If you have too many countable assets, you may not qualify. Without proper planning, this can mean losing money that could have been preserved for your loved ones. By planning ahead, you can structure your finances to meet Medicaid’s requirements while still protecting what you’ve worked hard to earn.
Medicaid estate recovery is another reason why Medicaid planning is essential. Many people don’t realize that the government can seek reimbursement from the estate of a Medicaid beneficiary for the benefits they receive when the beneficiary dies.
If Medicaid recovers assets from an estate, it can reduce or even eliminate any inheritance meant for children or other family members. Many people assume they will be able to pass down their home or savings, only to discover too late that Medicaid has a legal claim to those assets.
The good news is that proper Medicaid planning can help protect your assets from estate recovery. By using the right legal strategies, some of which will be discussed in the next section, you can ensure your loved ones receive what you intend for them instead of having the state claim it. However, these strategies must be put in place before applying for Medicaid, as last-minute transfers can trigger penalties.
Strategies for Medicaid Planning
Medicaid planning is about more than just meeting eligibility requirements—it’s about protecting what you’ve worked for while ensuring you get the care you need. Some of the strategies that can help you achieve this goal include:
Spending Down Assets
If your assets are slightly above Medicaid’s limits, you might be able to spend down your excess funds/ countable assets to qualify. But this doesn’t mean wasting money frivolously. There are rules governing the spend-down processes, and the excess funds can only be used for allowed expenses, such as paying off medical bills.
Medicaid-Compliant Annuities
If you have too many assets, you can convert them into a Medicaid-compliant annuity. This turns a lump sum into an income stream, which may help a spouse keep financial stability while the other qualifies for Medicaid.
Irrevocable Asset Protection Trusts
Placing assets in an irrevocable trust removes them from your name, meaning they won’t count toward Medicaid eligibility. But there’s a catch—Medicaid has a five-year look-back period. Anything transferred within five years of applying may attract a penalty.
Exempt Assets
Certain assets don’t count for Medicaid, like your primary home (if you plan to return or a spouse lives there), one vehicle, and personal belongings. Knowing what’s exempt can help you qualify without unnecessary asset transfers.
Gifting Strategies
You can give assets to family, but again, Medicaid penalizes gifts made within five years of applying. Strategic gifting before that five-year window can help protect assets.
Caregiver Agreement
If a family member provides care, a formal caregiver agreement allows you to pay them without Medicaid, treating it as a gift. This helps reduce assets while keeping care in the family.
An experienced attorney can help you find the best approach for your situation.
The Role of Wood Law Group in Medicaid Planning
At Wood Law Group, we understand that Medicaid planning can feel overwhelming. That’s why we’re here to guide Nevada families through the process with personalized strategies that protect assets and ensure access to essential care. With years of experience in elder law and estate planning, we help clients navigate the complexities of Medicaid while keeping their long-term goals in mind.
In the cases we handle, we typically begin with a thorough financial assessment, during which we review assets, income, and potential eligibility issues. This allows us to craft a strategy that preserves as much wealth as possible while ensuring compliance with Medicaid rules. Whether you’re planning ahead or need immediate assistance, we can help you make informed decisions.
Our practice extends beyond Medicaid planning. We also assist with estate and succession planning, helping clients safeguard their legacy for future generations.
Planning doesn’t end once an application is filed. Medicaid rules change, and life circumstances evolve. We can provide ongoing support to ensure your plan remains effective, providing guidance whenever you need it.
Our dedicated approach helps to ensure each client’s journey through Medicaid planning is smooth and stress-free.
Contact Wood Law Group Now
Medicaid planning is a crucial step in protecting your assets and ensuring access to long-term care. The earlier you start, the more options you’ll have to safeguard your future.
At Wood Law Group, we bring decades of combined legal experience to our practice in Medicaid and estate planning. With the knowledge we’ve gathered over the years, we can assess your unique situation and help craft a strategy that works for you.
Ready to take control of your Medicaid planning? Let’s start with a conversation. Contact us today to schedule a free consultation and explore your options.