An in-depth guide for Michigan residents. Learn about key strategies to protect your assets while qualifying for Medicaid to get the care you need.

2. The Reality Of Nursing Home Care
Over half of Americans over 65 will need long-term care.
However, unexpected health issues can necessitate
long-term care at any age.

3. The Financial Burden Of
Nursing Home Care
Nursing home care is costly in Michigan:
 Average daily cost: $389
 Average monthly cost: $12,000
 Average annual cost: $142,000
 Average stay: over 2 years,
totaling $323,000
Given these costs, it’s no surprise
that 70% of Michigan residents rely
on Medicaid to fund long-term care.

4. Medicaid Eligibility In Michigan
• Medicaid has strict income and asset limits.
• Exempt assets (not counted toward limits) include:
• Primary home
• One vehicle
• Personal belongings & household goods
• Life insurance policy (up to certain limit)
• Prepaid funeral & burial expenses (up to certain limit)
• Some types of assets and income streams are
considered unavailable and don’t count toward limits.
• There are also spousal and patient allowances for both
assets and income.

5. The Importance Of Planning Ahead
• Asset transfers within a
60-month period before
applying for Medicaid
can lead to divestment
penalties.
• Divestment penalties
delay Medicaid benefits
and require spending
down more assets before
qualifying for coverage.
• Strategic early planning
is critical.

6. 4 Key Strategies For Medicaid
Eligibility Planning

7. 1. Asset Conversion,
Explained
• Convert countable assets
into exempt ones
• No lookback period or
divestment penalties
• Example: Making
investments and
improvements into
your home

8. 2. Income Conversion,
Explained
• Convert nonexempt assets
into income streams
• Examples:
• Withdrawing retirement
funds in a tax-efficient
manner and investing in
Medicaid-compliant
annuities
• Creating “SBO” (solely for
the benefit of) trusts to
create income stream
for spouse who doesn’t
need care

9. 3. Making Assets Unavailable,
Explained
• Use irrevocable asset
protection trusts to
shield assets
• Must be implemented
well in advance
• Must adhere to strict
requirements

10. 4. Estate Planning, Explained
 Comprehensive approach to maximizing Medicaid
exemptions and allowances, particularly for married
couples with large estates
 Should take into account all aspects of your situation,
including age, assets, income and goals
 Strategic retitling of assets to protect them for yourself
and your heirs
 Advanced techniques like irrevocable trusts to shield assets
Planning must be done well in advance to avoid the five-year
lookback period.

11. Learn more about these strategies
by downloading our free white
paper, “Four Strategies For
Nursing Home Medicaid Planning:
Protect What You Own While
Getting The Care You Need.”
You can also contact us
directly through our website
or by calling 231-799-4994.
Sources:
Slide 1: ASPE Research Brief, “Long-Term Services And Supports For
Older Americans: Risks And Financing, 2002.”
Slide 2: Data complied from Medicare.gov and KCMU estimates based
on CMS National Health Expenditure Accounts data for 2013
Slides 3-9: Michigan Bridges Eligibility Manual (BEM)
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