Troy Elder Law & Medicaid Planning Services

Serving Michigan Families Since 1970. A+ BBB Rated Since 1998.

Medicaid planning is the legal process of organizing income and assets so a person qualifies for Medicaid benefits while protecting as much of the family’s savings as legally possible. Michigan’s eligibility rules are detailed, change over time, and require thorough financial documentation. Most families can’t navigate that process alone. Since 1970, Barron, Rosenberg, Mayoras & Mayoras P.C. has guided families throughout Troy, Oakland County, and surrounding Michigan communities through elder law matters, including Medicaid planning coordinated with long-term care decisions, estate documents, powers of attorney, and family goals. We treat every client like family, and our A+ BBB rating, maintained since 1998, reflects that commitment.

How Medicaid Works in Michigan

Medicaid is a joint federal and state program that helps pay for long-term care, including nursing home care, home health services, and hospital stays, for individuals who meet income and asset eligibility criteria. In Michigan, the program is administered by the Michigan Department of Health and Human Services (MDHHS). Eligibility depends on both income and countable asset limits, which differ depending on whether the applicant is single or married.

One of the most consequential elements of Michigan’s Medicaid rules is the five-year look-back period. When an application is filed, MDHHS reviews asset transfers made during the prior five years to determine whether assets were moved or given away to artificially reach eligibility limits. Transfers that don’t meet MDHHS requirements can trigger disqualification periods, leaving families responsible for nursing home costs they expected Medicaid to cover. Michigan’s Medicaid estate recovery program adds another layer of risk: after a beneficiary passes, the state may seek reimbursement from the estate for long-term care costs the program paid. Planning ahead is an effective way to address both concerns.

Advance Planning vs. Medicaid Crisis Planning

Families approach Medicaid planning from two very different starting points, and the right strategy depends entirely on where you are in that process.

Advance Medicaid Planning is for clients who are in good health, recently diagnosed, or simply thinking ahead. When time is available, assets can be structured carefully to reduce financial risk to a healthy spouse, protect the family’s savings, and support eligibility before care is urgently needed. This approach gives families more options and a stronger opportunity to protect assets.

Medicaid Crisis Planning addresses situations where a loved one is already hospitalized, in a nursing home, or in immediate need of care. Acting quickly matters here. Legal tools may still be available to protect assets even at this stage, but filing an incomplete or premature application can cause serious harm. An application submitted before eligibility is confirmed can create months of delays, leave large nursing home bills unpaid, and in serious cases lead to discharge proceedings. Denials based on excess assets can result in substantial amounts owed to the facility while the family waits to reapply.

Whether you’re planning ahead or already in a care crisis, our Medicaid planning attorneys in Troy can assess your situation and identify the options available to your family. Because our elder law practice works directly alongside our estate planning attorneys, Medicaid planning can be coordinated with existing trusts, wills, and other documents without starting from scratch.

Legal Strategies for Qualifying for Michigan Medicaid

There are several lawful approaches Michigan families can use to structure assets and income to reach Medicaid eligibility. The right combination depends on individual circumstances, and every strategy must be carefully timed and documented to avoid triggering penalties under the look-back rules.

Common planning tools include:

• Setting up an irrevocable trust that removes assets from countable resources for Medicaid purposes while preserving them for future use or beneficiaries.
• Transferring assets to a spouse when the applying spouse needs to move into a nursing home, using Michigan’s spousal protections to allow the healthy spouse to retain a portion of marital assets.
• Using Michigan’s Medically Needy spend-down pathway, which allows applicants whose income exceeds Medicaid’s limit to apply documented medical expenses against their countable income until they reach the eligibility threshold.
• Structuring an annuity so countable assets are converted into an income stream for the healthy spouse while the nursing home spouse qualifies for Medicaid under Michigan rules.
• Spending down countable assets through permitted expenditures, such as paying off debts, making home modifications, or prepaying funeral arrangements, as authorized under MDHHS guidelines, and preserving remaining assets through a will or trust.

Premature gifting, incorrectly structured trusts, or unapproved transfers can each trigger disqualification periods. Working with a Medicaid planning lawyer before taking action can help families avoid costly mistakes that are difficult to undo.