Axis Estate Planning | Trusted. Thoughtful. Here for what matters most.
At Axis Estate Planning, we’ve worked with countless families caught off guard by a sudden health crisis—often when a loved one needs immediate nursing home or in-home care. In these moments, decisions become urgent, options are limited, and missteps can be costly.
One of the most misunderstood and impactful rules in Medicaid eligibility is the five-year look-back period. It can determine whether your family receives the support they need—or is forced to spend down hard-earned assets.
What Is the Medicaid Look-Back Rule?
When you apply for long-term care Medicaid—the program that helps pay for skilled nursing or at-home support—the government reviews your financial history for the five years leading up to the application. This is known as the “look-back period.”
During this time frame, Medicaid checks for:
- Asset transfers
- Property sales below market value
- Large financial gifts
- Other transactions that appear to reduce your wealth intentionally
If any red flags are raised, Medicaid can impose a penalty period—a span of months or even years when you are ineligible for benefits. That delay can result in tens of thousands of dollars in out-of-pocket costs, right when you need care the most.
Common Mistakes That Can Trigger Penalties
Michigan families often face challenges not because of bad intentions—but because of a lack of awareness about how Medicaid rules work. Some of the most common missteps we see include:
- Gifting money to children or grandchildren—even for special occasions
- Adding a loved one to a home title without full payment
- Selling property to family at a discounted rate
- Donating to charities close to the time of application
- Co-signing on a loan or helping with a down payment without proper documentation
While these actions may feel generous or routine, they can be seen as uncompensated transfers under Medicaid rules—and result in a penalty.
Why Proactive Planning Matters
At Axis Estate Planning, we believe the best time to plan is before a crisis strikes. By taking action early, families can access more legal strategies to protect assets, reduce penalties, and ensure care is covered when it’s needed most.
We help our clients implement proven tools such as:
- Medicaid Asset Protection Trusts (MAPTs)
- Caregiver Agreements that document in-home support
- Customized Spend-Down Plans that align with Medicaid guidelines
Even if you’re already inside the five-year window, we may still be able to help mitigate penalties and preserve resources. The earlier you begin, the more options you’ll have.
The Axis Estate Planning Approach
The Medicaid look-back rule can feel overwhelming—but with the right guidance, it doesn’t have to be. Our team offers families across Michigan clear, compassionate, and legally sound solutions to navigate the complexity of long-term care planning.
We’re here to help you take control of your future—with dignity, foresight, and protection for what matters most.
Visit Us: 900 Wilshire Drive, Suite 105, Troy, MI 48084
Call Us: (248) 251-1001
Learn More: www.axisattorneys.com
Axis Estate Planning
Trusted. Thoughtful. Here for what matters most.
