26 Jun What Does a Medicaid Planning Attorney Do in Illinois?
Avoid Losing Your Life Savings to Nursing Home Costs
In Illinois, long-term care can cost over $80,000 per year—and Medicaid is the only safety net for most families. But qualifying isn’t simple. Between income limits, asset rules, and a strict 5-year look-back period, one wrong move can cost you everything.
That’s where a Medicaid planning attorney comes in.
Whether you’re preparing for future care or facing an immediate nursing home placement, a qualified attorney can protect your assets, guide you through eligibility, and ensure your loved one gets the care they need—without bankrupting the family.
What a Medicaid Planning Attorney Actually Does
A Medicaid planning attorney focuses on helping seniors and their families qualify for Medicaid without spending down all their assets. In Illinois, this includes both proactive (pre-planning) and emergency (crisis planning) strategies.
Here’s what their work typically includes:
1. Analyze Eligibility & Asset Structure
The first step is a comprehensive financial review. An attorney will:
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Identify countable vs. exempt assets
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Assess income levels against Illinois Medicaid thresholds
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Review past gifts or transfers for look-back violations
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Project how long current resources can last under private pay
This step forms the foundation of your Medicaid strategy. By identifying what the state will count against you, and what they won’t, the attorney creates a custom roadmap that can save you tens or even hundreds of thousands of dollars over time.
2. Design a Spend-Down & Asset-Protection Plan
Once your financial picture is clear, the attorney helps you reduce “countable” assets in Medicaid-compliant ways. Common tools include:
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Irrevocable Medicaid Asset Protection Trusts (MAPTs)
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Caregiver agreements with adult children
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Promissory notes to shorten penalty periods
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Exempt transfers (e.g. to disabled children or caregiving family members)
The goal here is to legally reduce your countable assets while preserving as much wealth as possible. A Medicaid planning attorney knows how to implement strategies that the state allows, so you don’t accidentally trigger penalties or waste resources.
3. Shield the Home from Medicaid Recovery
One of the biggest fears families have is losing the family home.
A Medicaid planning attorney can use tools like:
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MAPTs funded in advance
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Life estate deeds
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Caregiver child exemptions
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Lady Bird deeds (where available)
Without proper planning, Medicaid can place a lien on your home after you pass away. An attorney can help you take advantage of exemptions and tools that protect your home, keeping it in the family and out of the reach of the state.
4. Handle the Application & Represent You
Many families start the Medicaid application process and get stuck mid-way due to document requests, confusing asset questions, or delays. An attorney will:
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Prepare and file the entire application
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Communicate directly with the Department of Human Services (DHS)
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Respond to notices or denials
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Appeal if you’ve been wrongly penalized or rejected
The Medicaid application process in Illinois is detailed and unforgiving. A single missing document or misunderstood asset can delay your approval—or worse, cause a denial. A qualified attorney ensures your application is accurate, complete, and strategically positioned for success.
5. Coordinate With Estate & Family Planning
Most experienced attorneys will also help you:
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Draft or update powers of attorney and living wills
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Coordinate with family members on transfer timing
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Align your estate plan with your Medicaid plan
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Review wills, revocable trusts, and beneficiary designations
Medicaid doesn’t exist in a vacuum. A good attorney will make sure your legal documents, beneficiary designations, and family plan all align with your Medicaid strategy, so nothing falls through the cracks.
Why Hire an Attorney Instead of “Doing It Yourself”?
Many families try to “figure out Medicaid” on their own, or with a non-attorney planner. But here’s the difference:
| DIY or Planner | Medicaid Planning Attorney |
|---|---|
| May give general advice | Gives legal advice specific to your case |
| Can’t represent you in appeals | Can advocate in hearings & court |
| May not understand Illinois-specific rules | Knows DHS policies and loopholes |
| No legal liability | Holds a professional duty of care |
In crisis situations—such as when a loved one has already entered a nursing home—even a few weeks of delay can cost you thousands. An experienced attorney can act fast and legally.
When Should You Contact a Medicaid Planning Attorney?
There are two key times:
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Early Planning (5+ Years Before Care)
Ideal for setting up a Medicaid trust and protecting the home -
Crisis Planning (Immediate Care Needed)
When someone is already in—or about to enter—a nursing home
Even in a crisis, a Medicaid planning attorney can often protect half or more of your remaining assets.
Medicaid Planning Example:
Luis, a retired teacher in Brighton Park, is diagnosed with early Alzheimer’s. His daughter reaches out to an attorney for help.
With just eight months before full-time care was needed, he was able to do the following with the right help:
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Set up a MAPT for his home
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Use a caregiver agreement to preserve cash
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File the Medicaid application and respond to all DHS requests
In the end, Luis qualified for Medicaid, and his daughter kept the family home.
Talk to an Illinois Medicaid Planning Attorney Today
You don’t need to navigate this alone. At Eldersmart, we help Illinois families protect what they’ve worked for—without sacrificing care. Whether you’re planning ahead or already facing a crisis, we can help.
About Eldersmart
Eldersmart empowers Illinois seniors and their families with expert guidance on Medicaid planning, elder law, and long-term care. Visit eldersmart.org for Cook County–specific resources or to connect with an elder law attorney near you.
Elder law and Medicaid planning are complex areas that require precision and timing. Missteps can be costly, resulting in delays in care or asset forfeiture. Working with a qualified elder law attorney in Illinois ensures that your strategies comply with federal and state regulations.
Whether you’re planning for yourself or helping an aging parent, the time to act is now. With proper planning, you can protect what matters most and secure a dignified future.
Need help protecting your family’s legacy? Reach out to Eldersmart – your local elder law attorney today to discuss your options.
FAQs
Do I need a lawyer to apply for Medicaid in Illinois?
Technically, no—but the system is complicated. A lawyer can help you avoid costly mistakes, protect assets, and speed up approval.
How much does a Medicaid planning attorney cost?
It varies based on complexity, but the right legal strategy often saves far more than it costs.
Can an attorney help after someone is already in a nursing home?
Yes. Crisis planning is one of the most common services we provide—and you can often still protect a significant portion of assets.
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