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Beware of Non-Lawyers Offering Medicaid Planning Advice

Posted by Aubrey Sizer | Nov 03, 2020 | 0 Comments

In recent years a number of non-lawyers have started businesses offering Medicaid planning services to seniors. While using one of these services may be cheaper than hiring a lawyer, the overall costs may be far greater.

Medicaid Planning Services

If you use a non-lawyer to do Medicaid planning, the person offering services may not have any legal knowledge or training. Bad advice can lead seniors to purchase products or take actions that won't help them qualify for Medicaid and may actually make it more difficult. The consequences of taking bad advice can include the denial of benefits, a Medicaid penalty period, or tax liability.

As a result of problems that have arisen from non-lawyers offering Medicaid planning services, a few states (Florida, Ohio, New Jersey, and Tennessee) have issued regulations or guidelines providing that Medicaid planning by non-lawyers will be considered the unauthorized practice of law. For example, in Florida, a non-lawyer may not render legal advice regarding qualifying for Medicaid benefits, draft a personal service contract, determine the need for or execute an income trust, or sell income trust kits. In Florida, the unlicensed practice of law is a felony that is punishable by up to five years in prison, while in Ohio practicing law without a license is subject to civil injunction, civil contempt, and civil fine.

Since Medicaid is a wide-ranging, jointly funded state and federal health care program for low-income persons of all ages, each state has different application standards, rules, and requirements. The American Council on Aging has provided resources focused on Medicaid eligibility for older Virginia residents, aged 65 and over. This website resource relates specifically to long term care at home, in a nursing home, or at an assisted living facility. The Medicaid program in Virginia is administered by the Department of Medical Assistance Services (DMAS), and your eligibility is determined by your local Department of Social Services (DSS).

Applying for Medicaid in Virginia

Applying for Medicaid is a highly technical and complex process. A lawyer knowledgeable about Medicaid law in the applicant's state can help applicants navigate this process. An attorney may be able to help your family find significant financial savings or better care for you or your loved one. This may involve the use of trusts, transfers of assets, purchase of annuities, or increased income and resource allowances for the healthy spouse.


To learn more about Medicaid in Virginia, please visit this website: https://www.benefits.gov/benefit/1643. If you have questions about how to apply for Medicaid or need assistance, please contact our office, we would be happy to help.

About the Author

Aubrey Sizer

Aubrey Carew Sizer is a member of the Virginia State Bar with a practice focused on estate planning and elder law, specifically, long-term care planning, special needs planning for the disabled, guardianship and conservatorship, and probate, estate and trust administration.

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Attorney Sizer provides customized and affordable estate planning (including wills, living trusts, powers of attorney, and advance medical directives); elder law services (including long-term care planning, special needs planning for the disabled, and guardianships and conservatorships); probate, estate and trust administration (including advising executors and administrators of estates about post-mortem planning and the local probate process in Virginia), as well as general aging and disability advice in Northern Virginia, including but not limited to Arlington, Alexandria, Ashburn, Bristow, Burke, Centreville, Chantilly, Gainesville, Fairfax, Falls Church, Haymarket, Herndon, Leesburg, Manassas, Manassas Park, Reston, Springfield, Sterling, and throughout Loudoun, Prince William, and Fairfax counties.

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