There are many ways to approach Medicaid eligibility: spending down assets, exempt transfers, the creation of certain trusts, and general proactive planning before the look-back period. Some tactics, however, may not be as effective as they once were.

Illinois Divorce Penalty

In a recent, non-binding Illinois opinion, a man was penalized for transferring assets to his ex-wife via a divorce agreement. Harold was 76 years old when he entered long-term care due to Parkinson’s disease. Four months after entering the care facility, he divorced his wife of 50 years. As outlined in the settlement agreement, he kept his pension, Social Security benefits, and $123,000 cash and other assets. His ex-wife kept her Social Security benefits, $88,000 in cash and other assets, the car, the $325,000 house, and some non-marital property.

According to the Pew Research Center, one-in-three American workers are millennials—making them the largest generation in the US workforce. Today, millennials range in age from 23 to 38. Compared to previous generations, millennials are more ethnically and racially diverse; they are marrying later in life if at all; they are better educated with millennial women completing their bachelor’s degree in greater numbers than men; and, they have less wealth and more debt than baby boomers did at the same age.