What Is the 5-Year Look-Back Rule for New York Medicaid?

When you apply for Medicaid in New York, the program reviews your financial transactions for the past five years to ensure you have not transferred assets below fair market value to artificially qualify for benefits. Transfers discovered during this review may trigger a penalty period of ineligibility.

Can I Still Live in My Home if I Put It in a Medicaid Trust?

A MAPT allows you to continue living in your home depending on the trust terms. The deed changes to reflect trust ownership, but your right to occupy the home can remain intact when the trust is drafted correctly. Working with a qualified attorney is essential to preserve this right.

When Is the Right Time to Start Medicaid Planning?

The best time to start is before you think you need it. For residents of Orange County communities like Montgomery and Walden, consulting with an estate planning law firm today can help make sure the five-year clock starts running in time. Learn more about when to speak with an estate planning attorney.

Estate Planning Law Firm | Montgomery, NY

New York Medicaid eligibility for long-term care depends on both income and assets. Seniors in Montgomery, NY, and neighboring Walden who may need nursing home or home care services often require planning well in advance.

Most income sources count toward the thresholds, including salaries, pensions, Social Security, disability income, gifts, annuity payments, IRA distributions, and alimony. Because these rules change yearly, an estate planning law firm serving Montgomery, NY, can confirm what currently applies to your situation.

New York's look-back rules are a critical piece of any Medicaid plan. For institutional Medicaid covering nursing home care, the Department of Social Services reviews financial transfers going back 60 months from your application date, and every transaction in that window is scrutinized.

As of April 1, 2024, New York also implemented a 30-month look-back for community Medicaid, which covers home care services, a shift many families are still catching up with.

Assets transferred or given away within the applicable look-back window may still be counted against you. Residents in the Montgomery and Walden area submit applications through the Orange County Department of Social Services, with offices in Goshen and Middletown.

For many Orange County families, the primary residence is their most valuable asset. A Medicaid Asset Protection Trust, often called a MAPT, is one tool that may help shield that home from long-term care costs.

A MAPT is an irrevocable trust that holds assets outside your name for Medicaid's asset limits. Because the trust, not you individually, legally owns the assets, they are not counted when Medicaid determines nursing home eligibility.

When drafted correctly, a MAPT lets you continue living in your home while keeping it out of your countable assets. Timing matters: New York's five-year look-back for nursing home care means a MAPT created today for a Montgomery, NY, family may take full effect before any nursing home stay is needed.

A well-drafted MAPT can also preserve the capital gains tax exclusion for a primary residence and continued eligibility for enhanced STAR or veterans property tax exemptions. These details are technical, so consult an estate planning law firm before establishing a MAPT.

An attorney can help you understand your options before a health crisis forces your hand. Exceptions to the look-back rules exist for transfers to a spouse, a disabled child, adult children caregivers, and for paying off debt, but these are difficult to implement without an elder law attorney's help.

An estate planning attorney can help with more than just a MAPT, including reviewing wills and trusts, updating powers of attorney, and coordinating beneficiary designations. Nursing home planning requires a five-year runway; home care planning now requires at least 30 months. Starting early gives your family options, while waiting until a diagnosis or hospital admission often leaves little room to act.

What Is the 5-Year Look-Back Rule for New York Medicaid?
When you apply for Medicaid in New York, the program reviews your financial transactions for the past five years to ensure you have not transferred assets below fair market value to artificially qualify for benefits. Transfers discovered during this review may trigger a penalty period of ineligibility.
Can I Still Live in My Home if I Put It in a Medicaid Trust?
A MAPT allows you to continue living in your home depending on the trust terms. The deed changes to reflect trust ownership, but your right to occupy the home can remain intact when the trust is drafted correctly. Working with a qualified attorney is essential to preserve this right.
When Is the Right Time to Start Medicaid Planning?
The best time to start is before you think you need it. For residents of Orange County communities like Montgomery and Walden, consulting with an estate planning law firm today can help make sure the five-year clock starts running in time. Learn more about when to speak with an estate planning attorney.

Medicaid planning protects the home you built, preserves savings for your heirs, and ensures a health event does not undo a lifetime of work. Families in Montgomery, NY, Walden, Newburgh, and across Orange County face unique considerations shaped by local property values, Orange County DSS processes, and New York's evolving look-back rules.

Hudson Legacy Law works with Hudson Valley families to build estate plans with clarity and care. Attorney Dana Ware takes a personalized approach, helping clients understand their options before a crisis arrives.

To get started, book a discovery call today. You can also find Hudson Legacy Law on Google at Hudson Legacy Law to read reviews and get directions. Call (845) 224-3811 to speak with the team.