Why Waiting Until a Health Crisis to Plan Can Cost Your Family Everything
One of the most common things we hear from new clients is:
“We didn’t realize we needed to plan until something happened.”
A sudden hospitalization.
A dementia diagnosis.
A fall that leads to nursing home care.
Unfortunately, waiting until a crisis occurs often means families have fewer legal options, higher costs, and much greater stress — especially when long-term care and Medicaid planning are involved.
In this week’s MLG Monday, we explain why early planning matters, what can go wrong when families wait too long, and how proactive elder-law planning can preserve both assets and peace of mind.
The High Cost of Last-Minute Planning
Long-term care in New York is expensive. Nursing home costs can easily exceed $12,000–$15,000 per month, and home care expenses add up quickly as well.
When a family waits until care is already needed:
Assets may be “spent down” unnecessarily
Medicaid eligibility options become limited
Certain transfers may trigger penalties
Court involvement may become unavoidable
At that point, even strong legal strategies may only reduce damage — not fully prevent it.
Early planning, on the other hand, creates options.
Why Medicaid Planning Is Not a “Quick Fix”
Many people believe Medicaid planning simply means “moving assets out of your name.”
In reality, Medicaid has complex rules, including:
A five-year lookback period on asset transfers
Strict income and resource limits
Penalties for improper gifting
Estate recovery rules after death
Improper or rushed transfers can:
Disqualify you from Medicaid
Delay coverage when you urgently need it
Create unintended tax and creditor problems
Jeopardize the family home
Medicaid planning must be done strategically — and timing matters.
What Early Planning Can Accomplish
When planning is done before a health crisis, families may be able to:
Protect assets from future nursing home costs
Preserve the family home for children
Reduce or eliminate Medicaid penalties
Avoid guardianship proceedings
Maintain greater control over finances and care decisions
Create smoother transitions if incapacity occurs
Early planning does not mean giving up control — it means structuring ownership and decision-making in a way that protects you.
The Role of Trusts in Proactive Planning
As discussed in last week’s MLG Monday, trusts can play a powerful role in estate and elder-law planning.
Certain types of trusts may help:
Avoid probate
Provide management during incapacity
Preserve assets for loved ones
Support long-term care and Medicaid strategies
Not all trusts are Medicaid-protective, and not all trust language works the same way. Using the wrong type of trust — or setting it up incorrectly — can do more harm than good.
This is why individualized legal guidance is critical.
Planning Isn’t Only About Death — It’s About Life
Many people think estate planning only concerns what happens after they pass away.
In reality, a comprehensive plan also addresses:
Who can make financial decisions if you can’t
Who can make medical decisions for you
How bills get paid
How property is managed
How care is coordinated
Without proper documents in place, families may be forced into court-supervised guardianship — even when everyone agrees.
That process is costly, public, and stressful.
Common Warning Signs That It’s Time to Plan
You should strongly consider speaking with an elder law attorney if:
You are over age 60
You own a home
You have savings, investments, or retirement accounts
You have been diagnosed with a chronic illness
You are helping an aging parent
You want to protect assets for children or grandchildren
Planning earlier almost always produces better outcomes.
How Moskowitz Legal Group Can Help
At Moskowitz Legal Group, we focus on practical, forward-thinking elder law and estate planning solutions.
We assist clients with:
Medicaid planning and asset protection strategies
Trust creation and funding
Wills and estate planning
Powers of attorney and health care proxies
Guardianship avoidance planning
Probate and estate administration
Special needs and long-term care planning
Our goal is not to sell complicated documents — it’s to create plans that actually work when families need them most.
Final Word
A health crisis should not be the moment you discover your planning options are limited.
Early elder-law planning gives you choices.
Late planning often means damage control.
If you or a loved one are concerned about long-term care, Medicaid eligibility, or protecting family assets, speaking with an experienced elder law attorney now can make all the difference later.
