Medicaid Planning Myths That Could Cost Your Family in Monroe County

Planning for long-term care is one of the most important steps families in Monroe County can take. Nursing home costs in Rochester and nearby communities often exceed $180,000 per year, quickly draining savings and family resources. Medicaid can help cover these expenses, but many people avoid planning because they believe myths about eligibility and timing.  In Orleans or Genesee County? We can help you there, too.

At Klafehn, Heise & Johnson P.L.L.C., we help families separate fact from fiction so they can protect their assets and secure the care they need. Here are some of the most common myths about Medicaid planning in New York—and why believing them could cost your family.

Myth 1: “I Have to Spend Everything Before I Qualify for Medicaid”

This is one of the most damaging misconceptions. While Medicaid does have strict asset limits, you don’t have to lose everything to become eligible. With proper planning, you can legally protect certain assets for your spouse or heirs.

For example, New York allows exemptions for certain property, and trusts along with other strategies can be used to preserve wealth while still qualifying for benefits after the five-year look-back period. There are also last-minute, crisis planning strategies to preserve some assets even if there is not time to plan five years ahead.  Strategic transfers, timing, and documentation are key to avoiding or reducing penalties.

Talk to us about strategies to qualify for Medicaid without exhausting your family’s resources.

Myth 2: “I Can Transfer Assets to My Kids Right Before Applying”

Medicaid reviews financial transactions for the five years prior to your application. Large transfers or gifts made during this period can create a penalty period, delaying benefits and leaving you responsible for costs during that time.

Planning early—at least five years before a health crisis occurs—provides the most flexibility. Even if you’re already within the five-year look-back period, there may be legal strategies available to minimize penalties and preserve assets.

Myth 3: “Medicaid Will Take My House”

Many people fear they’ll lose their home if they apply for Medicaid. While Medicaid can seek reimbursement from an estate after death, there are ways to protect your home during your lifetime, such as using trusts, life estate deeds or taking advantage of spousal exemptions.

Every case is unique, especially if multiple heirs are involved or if the home is jointly owned. Local guidance is crucial to navigate these rules correctly.

We can explain how to protect your home while still qualifying for benefits.

Myth 4: “Medicaid Planning Is Only for the Wealthy”

Medicaid planning isn’t just about preserving large estates—it’s about making sure you can afford care without burdening your family or spending most everything you have on the costs of care. Even middle-income families benefit from planning, especially those who own a home, have retirement or other savings, or want to leave something for their children.

Myth 5: “I Don’t Need to Plan Until I’m Ready for a Nursing Home”

Waiting until a crisis hits is one of the most common and costly mistakes. Medicaid planning is most effective when done years in advance, allowing you to structure assets, create trusts, and ensure compliance with the five-year look-back period.

Even if you or a loved one needs care now and have not planned ahead, it’s still worth consulting an attorney. There may be crisis planning strategies that can preserve significant assets, even at the last minute.

Contact our office to explore both proactive and crisis planning options for your situation.

Why Local Guidance Matters in Monroe County

Medicaid rules are complex and vary by state. Even within New York, differences in local practices in Monroe County versus Genesee, Wayne or Orleans Counties—including procedures, caseworker expectations, and required documentation—can affect how your application is processed.

Working with a local law firm ensures your plan is tailored to local requirements and avoids costly mistakes that can delay benefits or trigger penalties.  

How We Help Families With Medicaid Planning

At Klafehn, Heise & Johnson P.L.L.C., we assist families in Rochester, Brockport, and surrounding communities with:

• Creating and funding Medicaid Asset Protection Trusts
• Reviewing eligibility and structuring asset transfers
• Protecting the family home and other key assets
• Navigating the Medicaid application process and responding to inquiries
• Coordinating estate plans to work alongside Medicaid strategies

Schedule a consultation today to discuss your family’s needs and start planning ahead.

Legal Disclaimer

This article provides general information about Medicaid planning in New York State and should not be considered legal advice. Every family’s situation is unique. For personalized guidance, contact Klafehn, Heise & Johnson P.L.L.C. in Rochester, NY. Portions of this content may be considered ATTORNEY ADVERTISING under 22 NYCRR Part 1200. Past results do not guarantee similar outcomes.