30 Aug
You legally don’t need a Medicaid lawyer to submit your Texas Medicaid application. However, that doesn’t mean you shouldn’t hire one. In fact, the more complicated your financial situation is, the more it makes sense to hire a Texas Medicaid applications lawyer to lead the way.
Not sure what the right decision is? Here are a few scenarios in which hiring a lawyer is the right choice to make:
You Want to Protect Your Assets
The frustrating reality is that not everyone who applies for Medicaid is eligible. If you have assets, such as a savings account or a home, you may be required to use them to pay for any care you or your spouse requires.
Hiring a Medicaid lawyer before submitting your Medicaid application may mean you don’t have to. Lawyers can talk you through asset protection strategies that may suit your unique situation, such as:
- Medicaid Asset Protection Trusts (MAPTs): Transfer assets such as your home or savings into an irrevocable trust. Being in a trust means you no longer own the asset, so it doesn’t count toward your Medicaid resource limit.
- Lady Bird Deeds: Also known as Transfer-on-death Deeds, they are special deeds that let you live in your primary home, but ownership is automatically transferred to your heirs outside of probate when you die. Lady Bird Deeds help you avoid the Texas Medicaid Estate Recovery Program (MERP).
You’re Worried About the Five-Year Lookback Rule
Gifting money or transferring property is a wonderful gesture, but it’s not without its consequences if you’re in the process of applying for Medicaid. That generosity could trigger State penalties under the five-year lookback rule.
The lookback rule is one implemented by the State. If you’re applying for long-term care through Medicaid, the State will look at your bank statements, property deeds, and financial records for the five years prior to your application date.
In particular, they’re looking for records or evidence of cash gifts, the transfer of assets into a trust, or property sold below fair market value. If they identify any of these transactions, they assume they were undertaken solely to meet Medicaid asset limits.
It’s in your best interest to hire a Medicaid lawyer if you’ve found yourself in this very situation, as there can be penalties for violations. In most situations, the State will refuse to pay for your nursing home or long-term care for a specific period. They calculate the period by dividing the transferred amount by the official daily penalty divisor rate of $262.37 (as of Sept 1, 2025).
For example, if you transferred $150,000 to a family member as a gift within the five-year period before applying for Medicaid, you would be ineligible for long-term care and must pay out of pocket for approximately 572 days.
$150,000 / 262.37 = 571.71
Some exceptions apply, which your chosen lawyer can discuss with you.
Your Income Exceeds the Monthly Limit
Being eligible for long-term care through Medicaid means earning less than the monthly limit. As of 2026, those limits are:
- Individual: $2,982 per month (300% of the Supplemental Security Income Benefit rate)
- Couple (both applying): $5,964 per month
- Couple (one applying): $2,982 per month (only the applicant’s income is counted)
- Asset limit (single): $2,000 in countable resources
The State assumes that if your income exceeds that limit, you can cover the costs of care yourself. However, that’s not a feasible reality for most people.
If you’ve found yourself in this position, contact a Texas Medicaid applications lawyer. They can discuss legal arrangements that may help you meet Medicaid financial eligibility requirements, such as a Qualified Income Trust, also known as a Miller Trust.
Miller Trust
A Miller Trust is a legal arrangement, or irrevocable trust, in which any extra monthly income beyond the Medicaid income limit is deposited into a trust and doesn’t count against you. The money in that trust can only be used to pay for medical costs, nursing home care bills, or spousal allowances.
When the person who established the trust dies, the remaining funds go to the state to help pay back Medicaid costs. For many people, a Qualified Income Trust is the most straightforward and effective way to ensure eligibility. If you’re unsure if this Medicaid strategy is right for you, contact a trusted Texas lawyer before submitting your Medicaid application.
Your Application Was Delayed or Denied
Being able to submit your Medicaid application yourself doesn’t always mean the process will be straightforward. Many people find themselves navigating the stressful situation of having their application delayed or denied. This can happen for many reasons, such as:
- Incomplete forms, with missing information such as proof of income, identity, or assets
- Missed deadlines
- Income or assets exceeding Medicaid limits
If your Medicaid application has been delayed or denied, contact a Medicaid lawyer as soon as possible. They may be able to help you fix a simple error or submit a formal appeal request.
Connect with the Texas Medicaid Applications Lawyers from Livens & Reed, PLLC
Don’t leave your or your loved one’s Medicaid eligibility to chance. Connect with a trusted Medicaid lawyer at Livens & Reed Attorneys at Law to navigate the application process with confidence.
We’re here to help you understand the eligibility criteria, provide strategies for ensuring eligibility, and guide you through accessing the government benefits you’re entitled to. Let’s get started. Contact our team to arrange your free consultation today.
