Description
Elder law clients rarely plan for Medicaid asset protection. A sudden illness requiring immediate long-term care placement or a degenerative diagnosis that will require extended care can devastate a family. A critical method in protecting income and assets as permitted under the law is the use of promissory notes.
Before the enactment of the DRA, a Medicaid applicant could provide documentation to show that a transaction was a loan rather than a gift at the time of the Medicaid application, resulting in such amounts not being counted as an asset. The DRA imposed restrictions on the use of promissory notes, loans, and mortgages and such transactions must be DRA-compliant to avoid hindering Medicaid eligibility.
A Medicaid applicant's assets and income must meet certain state-mandated levels, and any transfer of assets can't be subject to the penalty period once an application is submitted. The applicant must prove that any transfers were for reasons other than qualifying for Medicaid to avoid a penalty for transferring assets without receiving fair value in return.
Listen as our distinguished panel experienced in Medicaid asset preservation reviews the eligibility requirements and discusses best practices in using promissory notes and other approaches to preserve the assets of senior clients facing a Medicaid eligibility crisis.
Presented By
Ms. Schildgen is a go-to resource for families looking to preserve their assets and plan for the future. Her experience in the strategic aspects of tax planning, proper estate planning and administration, and Medicaid planning consistently helps clients avoid litigation and future problems. Ms. Schildgen has helped countless clients navigate Medicaid’s complex rules and regulations to achieve the most favorable results and obtain benefits without spending down their savings. She also assists family members in administering a wide range of estate planning matters, including probate, guardianship and trust issues, guiding them to ensure that each fulfills their fiduciary duties and properly administers assets for their beneficiary or ward.
Mr. Williamson’s practice specializes in taxation and estate planning. He has particular expertise in estate and gift taxation, income taxation of partnerships, and taxation issues unique to tax-exempt entities. He is also knowledgeable in the federal and state Medicaid rules and is skilled at drafting trusts and other types of sophisticated agreements.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Wednesday, November 19, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Analyzing the promissory note strategy
II. Structuring gift and DRA-compliant transactions and key provisions
III. Securing DRA promissory note safe harbor
IV. Using promissory notes for community spouses
V. Promissory notes and spousal refusal
The panel will review these and other key issues:
- What are the benefits of using a qualified promissory note for Medicaid planning and long-term care?
- What are the key considerations in structuring gift and DRA-compliant transactions and key promissory note provisions?
- How can applicants secure DRA promissory note safe harbor?
- How can qualified promissory notes be used with community spouses?
- Using promissory notes and the impact of spousal refusal options
- Best practices to convert clients' Medicaid-countable assets to exempt assets
