If you or a loved one needs nursing home care, you’ve probably already realized how expensive that care can be. The cost of long-term care in New Jersey often exceeds $5,000 per month, far more than many families can afford on their own. However, individuals who can’t cover the bill for long-term facilities still have options for accessing care through Medicaid.
Unfortunately, qualifying for Medicaid is not simple. The program is for individuals with limited income and resources, with strict financial rules. That’s why working with an experienced New Jersey Medicaid planning attorney is essential.
At Willis Law Group LLC, we focus exclusively on estate planning, asset protection, and elder law. We have decades of experience helping clients navigate New Jersey’s complex Medicaid rules. Our firm can help you develop a plan that protects your assets and your right to the care you need.
The Purpose of Medicaid Long-Term Care
Long-term care covered under Medicaid includes:
- Custodial care from an assisted living facility;
- Hospice care;
- Assistance with activities of daily living, like bathing, dressing, cooking, and eating; and
- All-day skilled nursing care for prolonged illnesses, cognitive disorders, and disabilities.
Medicaid can help ensure that individuals who require high levels of care are not left without medical services, food, or shelter simply because they lack resources. However, because the program is needs-based, strict eligibility requirements apply.
Medicaid Eligibility Requirements
To be eligible for Medicaid long-term care in New Jersey, an applicant must meet income and resource limits. In general, single adults in 2025 cannot make more than $1,800 per month. The monthly income limit increases by approximately $633 for each additional person in a household. In addition to income, Medicaid applicants typically cannot have more than a few thousand dollars in resources.
What Counts As Income?
Medicaid counts nearly all forms of income, including:
- Wages,
- Social Security benefits,
- Pensions,
- Investment income,
- Self-employment income,
- Annuities,
- Rental income,
- Grants,
- Prizes,
- Inheritances,
- Alimony,
- Loans,
- Royalties,
- Support payments, and
- Proceeds from insurance policies.
Even if you don’t have a high-earning job, other sources of income can quickly make you ineligible for Medicaid.
What Counts As Resources?
Resources generally include all income and assets belonging to the applicant and the applicant’s spouse. There are exceptions, but Medicaid may turn away individuals or couples without much income who own property, savings, or investment accounts.
Ways to Qualify for Medicaid
If you’re looking over your wages or what you have purchased in the past and are worried about your Medicaid eligibility, remember that you still have options. Our New Jersey Medicaid planning attorney can help you craft a plan to safeguard your healthcare access and protect your family’s financial future.
Identifying Excluded Income or Assets
Not every asset or payment you own or receive counts toward your Medicaid eligibility. Some of your income and property might be exempt under the law.
Exempt income can include:
- Repayable loans,
- Certain tax refunds,
- Food stamps,
- Casualty insurance payments for a destroyed excludable resource,
- Certain state or federal benefit payments,
- Education grants and scholarships,
- One-third of child support payments, and
- Foster care payments.
A New Jersey Medicaid lawyer can help you identify every part of your income you can keep without worrying about losing access to Medicaid coverage.
In addition to income, certain property may be exempt, including:
- Your primary residence;
- Cash surrender value of life insurance policies not exceeding $1,500;
- One vehicle;
- Household goods and personal items whose value doesn’t exceed $2,000;
- Non-home property used for self-support or business, such as tools, livestock, and equipment;
- Certain cash rewards for reporting fraud on the government;
- Burial spaces for you and your family; and
- Inaccessible resources.
Our goal is to help you and your family live as comfortably as possible while you receive the care you need and deserve.
Quickly Transferring Property Is Typically Not the Answer
Some families mistakenly believe they can simply transfer their property to children or other relatives to qualify. New Jersey prevents transfers by looking back at any property you sold (or gave away) for less than fair market value within the last five years. Medicaid assesses the fair market value of anything you transferred, and if its value exceeds the resource limit, you likely won’t qualify for long-term care coverage.
A Trust Might Be the Answer
If your income is above the Medicaid threshold, you are not automatically disqualified. New Jersey law allows certain types of trusts to help individuals still obtain coverage. These trusts fall into the following categories:
- Special needs trusts. If you have a disability and are under the age of 65, a parent, legal guardian, grandparent, or court may form this type of irrevocable trust to help you maintain eligibility. Using assets in the trust must only supplement your government benefits.
- Pooled trusts. This type of trust is a special needs trust for a disabled person that a non-profit association must manage. The trust pools your assets with others’ assets, but each beneficiary has a separate account.
Navigating Medicaid trust laws is tricky, but we are highly experienced and can help you.
What Does a Medicaid Lawyer Do?
Medicaid lawyers do far more than complete forms. At Willis Law Group, we can:
- Explain how Medicaid may count income and assets in your case,
- Review your financial picture to identify exempt and countable resources,
- Develop lawful strategies to protect your assets and preserve your eligibility,
- Draft and fund trusts in compliance with the law,
- Assist with Medicaid crisis cases when you need immediate care,
- Prepare and submit comprehensive and compliant Medicaid applications, and
- Represent you if the state challenges your eligibility or imposes penalties.
By combining legal knowledge with compassionate guidance, we help families avoid costly mistakes that could jeopardize their benefits.
Take the Next Step with Our New Jersey Medicaid Planning Lawyer
At Willis Law Group, our New Jersey Medicaid lawyer is here to guide you. With decades of experience and a laser focus on estate planning matters, we help families secure care, protect assets, and preserve their legacies. Contact us by phone or online today to schedule your personalized consultation.