MEDICAID PLANNING FOR MCKINNEY, TX

Helping Individuals and Families in McKinney Protect Their Assets While Planning for Long-Term Care

The cost of long-term care continues to rise and can pose a significant financial challenge for individuals and families in McKinney, TX. As people age, the need for nursing home care or other long-term care services often becomes one of the largest out-of-pocket expenses they will ever face. Without proper Medicaid planning, these costs can quickly deplete a lifetime of savings and place unnecessary financial strain on loved ones.

Nearly 70% of adults who reach age 65 will need some form of long-term care services and supports during their lifetime.
About 20% of today’s 65-year-olds will require long-term care for more than five years.
Women typically need long-term care for an average of 3.7 years, while men need care for an average of 2.2 years.
Medicare generally does not pay for most long-term custodial care, making Medicaid planning an important consideration for many families.
Long-term care services may include assistance with everyday activities such as bathing, dressing, eating, transferring, and medication management—services that can quickly become financially overwhelming without proper planning.
Medicaid remains the nation’s largest payer of long-term care services, highlighting the importance of proactive Medicaid planning to help preserve assets while qualifying for benefits.

Sources:
U.S. Administration for Community Living – How Much Care Will You Need?,
U.S. Department of Health and Human Services (ASPE), and
KFF – The Affordability of Long-Term Care and Support Services.

What Is Medicaid Planning and Elder Law?

What if you could protect your life’s savings while still qualifying for long-term care benefits?

For many families in McKinney, TX, the cost of nursing home care or assisted living raises an important question: Is it possible to preserve assets for your loved ones while still receiving the care you need? In many cases, the answer is yes—with proactive Medicaid planning.

At Pyke Balen & Moncure, P.C., we help individuals and families throughout McKinney and the surrounding North Texas communities develop legal strategies designed to protect assets while preparing for the possibility of long-term care. This area of law, often referred to as elder law or Medicaid planning, focuses on helping clients qualify for Medicaid benefits without unnecessarily exhausting everything they have worked to build.

Many people are surprised to learn that while Medicare provides valuable health insurance coverage for seniors, it generally does not pay for ongoing custodial care in a nursing home or most assisted living facilities. Those long-term care expenses are often covered by Medicaid, but eligibility is based on strict financial requirements involving both income and assets.

The key to successful Medicaid planning is structuring assets in a way that complies with Medicaid rules while preserving as much of your estate as possible for your spouse, children, or other beneficiaries. Depending on your circumstances, this may include legal tools such as a Medicaid Asset Protection Trust and other asset preservation strategies.

Our experienced Medicaid planning attorneys proudly serve clients in McKinney and throughout the Dallas-Fort Worth area, helping families prepare for the future with confidence and peace of mind.

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OUR MEDICAID PLANNING GOAL

HELP YOU QUALIFY FOR LONG-TERM CARE BENEFITS

PROTECT THE ASSETS YOU’VE WORKED HARD TO BUILD

PRESERVE YOUR LEGACY FOR YOUR LOVED ONES

Effective Medicaid planning is about balancing quality long-term care with responsible asset protection. At Pyke Balen & Moncure, P.C., our goal is to help individuals and families throughout McKinney create a legal strategy that supports both their current care needs and their family’s financial future.

Medicaid planning is a highly specialized area of law that combines estate planning, elder law, and Medicaid eligibility rules. Many attorneys—even those who regularly prepare wills and trusts—do not have extensive experience with the complex regulations governing Medicaid qualification and asset preservation.

Our attorneys have dedicated significant time to understanding these laws and developing customized Medicaid planning strategies for each client’s unique financial and family circumstances. We work closely with you to help protect your assets, plan for future care needs, and provide greater peace of mind for you and your loved ones.

WHO

A Medicaid Asset Protection Trust (MAPT) can be an effective planning tool for many individuals and couples, but it is not the right solution for every situation. The best strategy depends on your health, financial circumstances, and whether long-term care is an immediate or future concern.

In general, a Medicaid Asset Protection Trust is most beneficial for individuals who are planning before they need nursing home care or other long-term care services. Planning in advance often provides the greatest flexibility and the strongest opportunities to preserve assets for a spouse, children, or other beneficiaries while preparing for potential Medicaid eligibility.

If you or a loved one is already facing an imminent move into a nursing home or assisted living facility, there may still be legal options available. However, these situations typically require a different Medicaid planning strategy focused on protecting as many assets as possible while helping the individual qualify for benefits as quickly as the law allows.

At Pyke Balen & Moncure, P.C., we work with families throughout McKinney to evaluate their unique circumstances and recommend the most appropriate Medicaid planning approach. Whether you’re planning years in advance or responding to an immediate long-term care need, our attorneys can help you understand your options and develop a strategy tailored to your goals.

WHEN

For many individuals and couples, Medicaid planning begins during retirement or as they approach retirement age. Planning early—before long-term care becomes an immediate necessity—often provides the greatest opportunity to protect assets and create a comprehensive strategy for the future.

One important consideration is Medicaid’s five-year look-back period. When someone applies for long-term care Medicaid benefits, the program reviews certain financial transactions made during the 60 months preceding the application. Because of this rule, proactive planning can significantly improve the options available to protect assets while preparing for potential Medicaid eligibility.

It’s important to understand that the existence of a Medicaid Asset Protection Trust does not automatically mean you must wait five years before qualifying for Medicaid. Every family’s circumstances are different, and eligibility depends on numerous factors. An experienced Medicaid planning attorney can evaluate your specific situation and explain the strategies available under current Texas and federal law.

Even if your health has recently declined or you’ve received a serious medical diagnosis, you should not assume it’s too late to plan. While the available options may differ from those available through advance planning, many families still have legal opportunities to preserve assets and prepare for long-term care.

WHAT ASSETS CAN BE PROTECTED?

There are virtually no assets that can’t be used to fund a Medicaid Asset Protection Trust, but some assets are ideal.

RESIDENCE / HOMESTEAD

Your residence is an ideal asset for funding into a Medicaid Asset Protection Trust. Although Medicaid treats your homestead as a non-qualifying asset, if you don’t plan right, the State of Texas can recover ALL of the expenses of your care against your homestead. So, to protect your homestead for your heirs, you must plan. Pyke Balen & Moncure, P.C. can save your homestead for your family!

LEGACY ASSETS – FARMS, RANCHES, AND VACATION HOMES

A legacy asset is one intended to be handed down through the generations without being sold. Family farms, ranches, vacation homes and get-away properties are excellent example of legacy assets. Because the intent is to have these in the family for the entire family’s enjoyment, these assets need to be protected from Medicaid qualification rules. If just one co-owner needs to qualify for Medicaid, the family’s legacy asset could be forced to be sold. Pyke Balen & Moncure, P.C. can prevent the assets from ever being sold to pay for medical expenses.

OIL & GAS ROYALTY INTERESTS

Royalty interests are another type of legacy asset. Almost all industry professionals recommend to never sell these assets. Since, often, the current income of these assets can be low but their future potential great, selling almost always nets a disappointing price. Since the assets are being held for generations, they may disqualify multiple people from qualifying for Medicaid while providing insufficient income to pay for those persons’ care. A Medicaid Asset Protection Trust can preserve these assets for future generations and those bonus royalties to come!

BANK AND INVESTMENT ACCOUNTS – STOCK AND BOND AND MUTUAL FUNDS

Cash in the bank and investment accounts can be excellent assets to protect with the help of Pyke Balen & Moncure, P.C. If you believe it is likely that these assets don’t need to be used for your normal household expenses, then they are probably a good candidate for funding into a Medicaid Asset Protection Trust.

COLLECTIONS, ANTIQUES, AND JEWELRY

Personal property you own may be very important to you. You definitely don’t want to sell it to pay for your care, but art, antiques, collectables, and jewelry do not create income to pay for your care. Therefore, they are excellent assets to fund into a Medicaid Asset Protection Trust. Our attorneys can protect your valuable and precious assets and collections!

TAX DEFERRED ACCOUNTS – IRAs and 401Ks

Tax deferred accounts are the only assets we routinely advise to not be transferred into a Medicaid trust. Any distribution of these assets is taxable and transferring to a Medicaid Asset Protection Trust can trigger income taxes. However, whenever distributions are made by whoever takes them, taxes will be paid. So, sometimes it is advisable to aggressively de-fund these assets and use the resulting cash to fund a Medicaid Asset Protection Trust.

IS MEDICAID PLANNING SAFE AND LEGAL?

One of the most common questions we hear from families in McKinney is whether Medicaid planning is legal. The answer is yes—when it is done properly and in compliance with state and federal law.

Medicaid is not intended solely for individuals with little or no income. It is also an important long-term care program for many middle-income families who want to protect a lifetime of savings from being consumed by nursing home or long-term care costs. Because Medicaid has strict financial eligibility requirements, careful planning is often necessary to qualify while preserving assets legally.

At Pyke Balen & Moncure, P.C., every Medicaid planning strategy we recommend is designed to comply with applicable Texas and federal Medicaid laws. We do not engage in fraudulent transfers or attempt to conceal assets. Instead, we use established legal planning techniques that are specifically recognized under Medicaid regulations when implemented correctly.

Medicaid laws and regulations can change over time, which is why it is important to work with attorneys who stay current on developments affecting eligibility and long-term care planning. Our goal is to provide sound legal guidance that helps protect your assets while giving you confidence that your plan is built on a solid legal foundation.

If you are concerned about paying for long-term care without losing everything you’ve worked for, our attorneys can explain your options and help you determine whether Medicaid planning is appropriate for your family’s circumstances.