Long-term care can be one of the most significant expenses a family in Louisiana will face. A private room in a nursing home can cost thousands of dollars each month. If you or a loved one needs that care, how will you pay for it—and still protect your home and savings?
That’s where Medicaid planning comes in. At Kallio Law Firm, LLC, based in Prairieville, we work with individuals and families throughout Ascension Parish to prepare for the high cost of care. Whether you’re planning ahead or already facing a care crisis, we’ll help you understand your options and preserve what matters most.
What Is Medicaid and Why It’s Important
Medicaid is a public benefit program that helps cover medical and long-term care expenses for people who meet certain income and asset limits. It’s different from Medicare, which is available to most people over 65 regardless of income.
In Louisiana, Medicaid is often the only way to afford long-term nursing care, which isn’t fully covered by Medicare or most private insurance. While Medicaid is intended for those with limited financial means, there are legal ways to qualify even if you have assets, but only if you plan ahead.
Why Planning Ahead Makes a Difference
Three key facts make Medicaid planning worth your attention:
- Long-term care costs can drain a lifetime of savings
- Medicaid eligibility depends on having limited income and assets
- Louisiana enforces a five-year look-back period, which can trigger penalties for asset transfers
Without a plan, you may have to spend down your assets before you can qualify for help. But with the right legal tools in place, you can qualify for Medicaid while still protecting your home, your spouse, and your legacy.
Common Strategies for Medicaid Planning
Not all assets count against you when applying for Medicaid. With careful planning, some “countable” assets can be converted into “non-countable” ones. This may include:
- Making improvements to your primary residence
- Buying a new home
- Upgrading a vehicle
- Prepaying for funeral or burial expenses
- Paying off debts
- Creating a personal care agreement for a family member providing care
- Supporting a disabled child or dependent
It’s important to work with a Medicaid planning attorney who understands which strategies are appropriate under Louisiana law and how they apply in your specific situation.
Medicaid Asset Protection Trusts (MAPTs)
One long-term planning tool we often recommend is a Medicaid Asset Protection Trust, also known as a MAPT. This irrevocable trust allows you to transfer assets out of your name while maintaining some level of control or benefit.
Once five years have passed, the assets in the trust are not counted for Medicaid eligibility. This allows you to qualify for care without depleting your entire savings, while still preserving an inheritance for your loved ones.
We help clients in Prairieville and surrounding Ascension Parish communities establish MAPTs that are legally sound and aligned with their goals.
Additional Planning Tools
In some cases, a Medicaid Asset Protection Trust may not be the only solution. Depending on your needs, we may recommend other legal and financial strategies that can help preserve eligibility and protect your resources.
Pooled Income Trusts
A Pooled Income Trust allows individuals with income above Medicaid limits to set aside the excess in a trust managed by a nonprofit organization. The funds are then used to pay for approved living or care expenses. This strategy is especially helpful for individuals who need Medicaid services but don’t quite meet the income threshold. It offers a way to maintain eligibility without forfeiting necessary support.
Medicaid-Compliant Annuities
A Medicaid-compliant annuity turns a lump sum of assets into a stream of income, which may be excluded from countable resources. To qualify under Louisiana Medicaid rules, the annuity must be irrevocable, non-transferable, and structured to pay out within your life expectancy. It must also name the State of Louisiana as the remainder beneficiary. This option can help protect assets while still providing ongoing support for a spouse or dependent.
Promissory Notes
A properly structured promissory note allows you to loan money to a trusted individual in exchange for fixed payments over time. When drafted in compliance with Medicaid rules, the repayment schedule turns a countable asset into a non-countable income stream. This can be a smart option for individuals who need to reduce assets quickly but want to keep the funds within the family.
Each of these strategies must be carefully crafted to meet both state and federal Medicaid guidelines. We’ll help you evaluate which options are best suited to your situation and ensure they’re implemented correctly.
Serving Prairieville and Ascension Parish with Care
At Kallio Law Firm, LLC, we understand how overwhelming Medicaid planning can feel. We provide personalized guidance and practical solutions for families in Prairieville, Ascension Parish, and throughout the region. Whether you’re planning for yourself or helping a parent, we’re here to make the process easier and more effective.
Contact an Experienced Ascension Parish & Prairieville Medicaid Planning Attorney
Don’t let the cost of long-term care catch you off guard. Let’s talk about how to prepare, protect your assets, and ensure your loved ones are cared for. Contact Kallio Law Firm, LLC today for a confidential consultation.
