1. "Oh, my gosh. The hospital says Dad can't live at home anymore.  They want to discharge him to a nursing home. We need to apply for Medicaid today!"

Remember, Medicaid is a welfare program, of last resort. Even though Medicare pays very little in the way of nursing home costs, they will likely pay for Dad's nursing home stay, at least in part, for a while (up to 100 days). This is true if Dad was in the hospital for at least three days, and will be receiving some sort of therapy or other skilled care when he enters the nursing home. Take your time to  explore all your financial alternatives, and if Medicaid is right for Dad, then apply for it. But a prematurely filed Medicaid application could back-fire, and cause Dad to be denied Medicaid eligibility down the road.

2. "We need to sell Mom's home, or else the nursing home (or Medicaid, or 'the state') will take it!"

In the United States we have a legal tradition of protecting one's home. Medicaid views an applicant's home as "exempt," not counted in determining eligibility. In fact, selling it may be precisely the wrong thing to do, and merely changing the Deed (ownership) to it may be all that's necessary to protect it. Only after it is determined that Medicaid isn't appropriate should the home be considered for sale.

3. "I can't get Medicaid because I gave assets away within the last 36 months."

It's true that Medicaid "penalizes" the gifting of assets done within the prior 36 months. But that doesn't prohibit the receipt of Medicaid for those 36 months. The actual calculation of the penalty period (during which time you can't get Medicaid)is based on a formula which varies from state to state. The penalty may result in a waiting period far less than 36 months.

4. "Help! I need a Miller Trust to qualify for Medicaid."

True, in a few states, if the monthly income of a Medicaid applicant exceeds a certain amount, then that income must be placed into this special trust in order to be found eligible. This is only true, however, in fewer than 20 states. And in no state does it pertain to assets, or to the income of an applicant's spouse, only to the income of the applicant him or herself. It's a small matter for an experienced elder law attorney to draw up a Miller Trust in situations where it may be required.