Protecting Your Assets From Medicaid: Top Strategies for North Carolina Estate Planning

Navigating Medicaid eligibility can be complex for North Carolina families seeking long-term care without sacrificing their legacy. Whether planning for retirement, managing aging parents’ assets, or simply safeguarding hard-earned wealth, understanding how to protect assets from Medicaid is critical. Below, discover three proven strategies used by estate planning attorneys to help North Carolinians qualify for Medicaid while securing family assets.

1. Medicaid Spend Down: Maximizing Your Resources

A Medicaid spend down is the process of meeting North Carolina’s strict asset limits for Medicaid qualification. Typically, individuals must have countable resources at or below a state-determined threshold. Rather than simply spending money, strategic spend down involves:

• Transitioning assets to forms not counted against Medicaid thresholds
• Converting certain holdings into income or exempt assets
• Making beneficial purchases for yourself or loved ones (such as home improvements or paying down debt)

Thoughtful spend-down planning ensures that more of your wealth supports your family rather than being drained by care costs.

2. Medicaid Asset Protection Trust: Shielding Wealth Over Time

A Medicaid asset protection trust is ideal for proactive planners. To work effectively, assets like real estate, brokerage accounts, cash, or business interests must be transferred into the trust at least five years before applying for Medicaid—due to federal look-back rules. Once protected, these assets no longer count against eligibility requirements and won’t need to be spent down during a crisis.

Key benefits of a Medicaid trust include:

• Safeguarding property and investments for heirs
• Maintaining eligibility for care without sacrificing inheritance
• Peace of mind for families seeking a legacy

Trusts are best implemented well in advance, so early consultation with an estate planning lawyer is advised.

3. Medicaid-Compliant Annuity: Transforming Savings Into Income

Medicaid-compliant annuities offer another solution for those facing asset hurdles. By converting countable resources—such as cash, securities, or IRAs—into a steady income stream, families can reduce countable assets below the Medicaid threshold. The annuity pays out monthly installments rather than being counted as a lump-sum asset, aligning perfectly with Medicaid rules.

For example:

• $100,000 placed in an immediate annuity becomes regular monthly payments
• This income does not count toward Medicaid asset limits
• It provides ongoing support while aiding eligibility

Consulting with an experienced attorney ensures the annuity meets all North Carolina and federal guidelines.

Secure Your Legacy With Cary Estate Planning

If you’re ready to take control of your legacy and protect your assets from Medicaid’s reach, partnering with Cary Estate Planning can help. Our experienced attorneys offer free discovery calls and personalized consultations across North Carolina.

Don’t wait until a crisis. Start planning today to preserve your family’s future and maximize peace of mind. Fill out our contact form and one of our team members will reach out to you.

Or directly schedule a free discovery call at your convenience: Schedule Your Discovery Call