THE ETHICS OF MEDICAID PLANNING
An article by:  Attorneys David H. Ferber and Edward D. Beasley

We proudly admit that Medicaid Planning (i.e. helping folks protect their assets from a nursing home stay) is a significant part of our practice. What we are often amazed at is the double standard between our Medicaid Planning to help average people save some of their assets and traditional estate planning for wealthy clients, who likewise desire to save as many of their assets for their heirs as possible.

Congress specifically passes laws which give huge estate tax breaks for the wealthy.  Currently, an unmarried person can pass five million dollars tax free to their heirs, and a married couple can pass ten million dollars.   We are in favor of this tax break, because it helps people save their assets from the government.   Further, we commend, not criticize, those exceptional lawyers with the skills and expertise to maneuver within the legal parameters of the tax code and prepare sophisticated legal devices to minimize taxes.

What amazes us, however, is that when we utilize similar laws, passed by the very same government, to assist people of moderate means who are worried about the loss of everything to a nursing home stay, we are criticized.  Is it not true that the laws apply as equally to the wealthy as to those in the middle of the economic spectrum?   In our opinion, utilizing these laws for average people to save assets from a nursing home stay is legal, moral and ethical.  After all, what really is the difference ‑ saving a wealthy person's home on Lake Winnipesaukee from the government or saving an average person's modest home from the same government?