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Richard M. Barron

attorney at law

Member National Academy of Elder Law Attorneys


"Common Mistakes in Texas Medicaid Asset Protection Planning"

  • Depleting assets by waiting too long to begin asset protection planning.

  • Thinking that it is too late to begin the planning process.

  • Believing that Medicare pays for long term nursing home care.

  • Failing to preserve a reserve fund to pay for care not provided by Medicaid.

  • Relying on advice from someone who is not an expert in the Texas Medicaid program.

  • Failing to get a durable power of attorney signed  before a person is incompetent.

  • Neglecting the possibility that the well spouse may die before the sick spouse.

  • Skipping the fact that both spouses may need nursing home care.

  • Failing to take advantage of spousal protection regulations.

  • Transferring assets without understanding the Texas of Agency of Aging transfer rules and penalties.

  • Confusing the look back period and the transfer disqualification period.

  • Causing the look back period and the transfer disqualification period.

  • Transferring the home directly to the children without understanding the homestead protection laws in Texas.

  • Ignoring exempt transfers that do not result  in a period of disqualification.

  • Failing to disclose all transfers made in the 36 months prior to the Medicaid application.

  • Confusing the Internal Revenue Service $11,000 yearly gift tax exclusion with the Department of Aging rules concerning disqualification penalties caused by the transfer of assets.

  • Failing to consider the tax consequences during the planning process.

  • Thinking that assets in any type of trust will not be counted in the available asset total.

  • Lacking knowledge about how annuities can be used to gain Medicaid qualification quickly.

  • Missing the use of exempt assets in the planning process.

  • Confusing gross income with net income, the amount actually received after deduction for such things as income taxes, health insurance  premiums, etc.

  • Applying for Medicaid for a person whose gross income is greater than Texas's income cap and who does not have a Qualified Income Trust.

  • Failing to fund the Qualified Income Trust each month of Medicaid benefits.

  • Omitting any assets or source of income in the Medicaid application.

  • Failing to keep accurate records for submission to Texas Department of Aging.

  • Neglecting to notify of any changes in assets or income after approval.


Legal Disclaimer

This information has been provided for informational purposes only.  It does not constitute legal advice. 

The receipt of this information does not establish an attorney-client privilege.

Proper legal advice can only be given upon consideration of all the relevant facts and the law. 

Therefore, you should not act upon any information contained herein without seeking

appropriate legal counsel.  

Richard M. Barron

Attorney at Law

209 E. Main Street

Whitesboro, Texas 76273

903-564-3663, 800-939-9093

Fax - 903-564-5562

email - [email protected]