Schedule Your Free Strategy Session
Dear Montgomery County Homeowner,
As a certified elder law attorney serving Maryland families, I’ve helped hundreds of homeowners like you protect their most valuable asset while securing needed care.
The financial reality is sobering:
– Nursing home care in Montgomery County costs approximately $12,400 per month ($148,800 annually)
– Medicare does NOT cover long-term nursing care
– Without proper planning, your home and life savings could be depleted
This guide reveals protection strategies that many financial advisors and even healthcare professionals don’t fully understand.
Maryland Medicaid Eligibility: The 2025 Rules
To qualify for Maryland Medicaid (Medical Assistance), an applicant must meet:
Medical Eligibility:
– Require a “nursing home level of care” as determined by medical assessment
– Need assistance with multiple activities of daily living
Financial Eligibility:
– Income Limit: $2,901 per month (2025) for an individual
– Asset Limit: $2,500 in “countable assets” for an individual
These limits seem impossibly low, but Maryland provides critical exceptions for homeowners and married couples.
Special Protections for Montgomery County Homeowners
The Primary Residence Exemption
Your Montgomery County home may be completely exempt from Medicaid’s asset calculations if:
– The equity value is less than $730,000 (2025 Maryland limit)
– You or your spouse live in the home, OR
– Certain family members live in the home (adult disabled child, child under 21, or caretaker child), OR
– You intend to return home (even if unlikely)
Warning: This exemption only protects your home during your lifetime. Without proper planning, Maryland’s Estate Recovery program can claim your home after death.
Critical Protections for Married Couples
When one spouse needs nursing home care while the other remains at home, Maryland provides:
The Community Spouse Resource Allowance (CSRA):
– The healthy spouse can keep up to $157,920 in assets (2025 figure)
– This is in addition to the exempt home, car, and personal property
– Through proper planning, this amount can often be increased
The Minimum Monthly Maintenance Needs Allowance (MMNA):
– The healthy spouse can keep income of up to $3,948 per month (2025 projection)
– This prevents the healthy spouse from becoming impoverished
The 5 Most Common Mistakes Montgomery County Homeowners Make
Mistake #1: Giving Away Assets Too Late
Maryland has a 5-year “look-back” period. Any gifts within 5 years of applying create a penalty period of ineligibility.
Mistake #2: Using the Wrong Power of Attorney
Standard power of attorney documents typically lack Medicaid planning provisions, limiting your options if you become incapacitated.
Mistake #3: Improper Handling of the Home
Common errors include adding children to the deed (creating tax issues), transferring outright (triggering the 5-year look-back), or selling unnecessarily.
Mistake #4: Spending Down Assets Unnecessarily
There are numerous legal ways to convert “countable” assets into “exempt” assets without simply spending them away.
Mistake #5: Poor Application Timing and Documentation
Applying too early, too late, or without proper documentation can result in unnecessary denials, delays, and expenses.
Protection Strategies for Montgomery County Homeowners
Strategy #1: The Medicaid Asset Protection Trust (MAPT)
Best for: Those planning 5+ years ahead
– Home and other assets are transferred to an irrevocable trust
– You retain the right to live in your home and receive income
– After 5 years, assets are protected from Medicaid
– Home is protected from estate recovery after death
Strategy #2: The Enhanced Life Estate Deed
Best for: Those wanting to maintain control while beginning protection
– You transfer your home to beneficiaries while retaining a life estate
– Enhanced powers provision gives you continued control
– After 5 years, the home is fully protected
– Even during the 5-year period, only a fraction of the home’s value counts
Strategy #3: The Caretaker Child Exception
Best for: Families where an adult child has been providing care
– Allows penalty-free transfer to a child who has:
* Lived in your home for at least 2 years before nursing home admission
* Provided care that delayed nursing home placement
– Transfer is exempt from the 5-year look-back period
– Home is immediately protected
Strategy #4: The Medicaid Annuity Strategy (Couples)
Best for: Married couples facing immediate care needs
– Healthy spouse keeps the exempt home and the CSRA ($157,920 in 2025)
– Excess assets are converted into a Medicaid-compliant annuity
– Can protect 40-60% of assets even with immediate care needs
Strategy #5: The Half-a-Loaf Strategy (Crisis Planning)
Best for: Single individuals needing care soon
– A portion of assets is gifted (typically to adult children)
– Remainder is used to pay through the resulting penalty period
– Effectively protects about half of the assets that would otherwise be spent
The Montgomery County Medicaid Application Process
Step 1: Medical Eligibility Determination
– Complete the Maryland Medical Assistance Long-Term Care Application
– A nurse conducts an assessment of care needs
– Must meet criteria for “nursing home level of care”
Step 2: Financial Application Preparation
Proper documentation is critical:
– 5 years of financial statements for all accounts
– Deed and mortgage information for real estate
– Life insurance policies and annuity contracts
– Income verification (Social Security, pension, etc.)
– Health insurance information
Step 3: Submission and Follow-up
– Applications submitted to Montgomery County Department of Social Services
– Processing typically takes 30-45 days
– Must respond promptly to requests for additional information
Taking the Next Step
Assess Your Situation
– Is nursing home care needed immediately or potentially in the future?
– Do you own a home in Montgomery County?
– What is your approximate asset level?
– Have you made any gifts within the last 5 years?
Consult with a Certified Elder Law Attorney
General practice attorneys typically lack specialized knowledge. Look for an attorney who:
– Is certified in elder law
– Focuses specifically on Medicaid planning
– Has experience with Montgomery County Medicaid offices
Act Sooner Rather Than Later
The earlier you begin planning, the more options you’ll have. Even if care is needed imminently, don’t assume it’s too late—effective “crisis planning” strategies exist.
Next Steps
To schedule your free Montgomery County Medicaid Protection Strategy Session, call (301) 913-2948 or contact the JDKatz team today.
During this complimentary 30-minute consultation, we’ll:
1. Assess your specific situation
2. Identify potential protection strategies
3. Create a preliminary timeline for implementation
4. Answer your questions about Medicaid eligibility
There’s no obligation, and all consultations are completely confidential.