Imagine working your whole life to build a nest egg, only to see it vanish paying for nursing home care. This is the harsh reality for many New Yorkers who don’t plan ahead. That is because nursing home care in New York is expensive. A private room can cost over $170,000 a year. Without a plan, your savings and home could be at risk.
The good news? With the right strategies, you can shield your assets and still get the care you need.
Start with Medicaid planning early
Medicaid helps cover long-term care costs, but it comes with strict financial rules. In 2025, a single person must have no more than $32,396 in countable assets to qualify. That means many people need to spend down their savings before they can receive help.
But with early planning, you can avoid losing everything. Strategies like gifting or moving assets must be done carefully and ahead of time.
Additionally, New York applies a five-year look back rule. If you move assets within five years of applying for Medicaid, you could face a penalty period where you are ineligible for coverage. That is why starting early is key.
Use irrevocable trusts
An irrevocable trust lets you transfer assets out of your name. Once in the trust, the assets do not count against your Medicaid eligibility.
Here are some key benefits:
- Protects your home and other major assets
- Allows you to keep the income generated by trust assets
- Helps avoid probate
This kind of trust must be set up at least five years before applying for Medicaid.
Transfer your home smartly
You might be able to transfer your home to certain family members without penalty. Medicaid allows exceptions for specific relatives to avoid punishing caregivers or dependents. These transfers follow strict rules and must meet legal criteria, such as proving the caregiver child’s delayed nursing home placement. One wrong move could delay Medicaid coverage or trigger penalties.
Consider long-term care insurance
Long-term care insurance offers another layer of protection against the high cost of nursing homes. It helps cover expenses that Medicaid may not handle. The best time to buy a policy is while you’re still healthy. Also, because the premiums are lower and you are more likely to qualify.
Talk to a professional now
Protecting your assets from nursing home costs is not simple. New York’s Medicaid rules are detailed, and one misstep can cost you time and money.
Generic plans often overlook important exceptions or miss deadlines. A personalized strategy gives you the best chance to keep what you have worked for.
An experienced elder law attorney can help you understand the law, avoid penalties and build a plan that fits your life and goals.