New Jersey Medicaid Trust Attorney Christine Matus Explains Medicaid Crisis Planning in New Jersey
TOMS RIVER, NJ – October 27, 2026 — Families confronting a sudden long-term care emergency in New Jersey often face difficult financial decisions with little time to prepare. New Jersey Medicaid trust attorney Christine Matus of The Matus Law Group (https://matuslaw.com/what-is-medicaid-crisis-planning-in-new-jersey/) is providing guidance on Medicaid crisis planning, a legal strategy designed to help individuals qualify for Medicaid benefits quickly while preserving assets when an unexpected medical crisis arises.
According to New Jersey Medicaid trust attorney Christine Matus, crisis planning becomes necessary when a health emergency creates an immediate need for care that families cannot provide at home. “A stroke, a fall, or a dementia diagnosis can suddenly require round-the-clock supervision, and the cost of nursing home or in-home care can drain a family’s savings in a short period of time,” Matus explains. Without proper planning, families risk spending down their life savings unnecessarily to cover care expenses.
New Jersey Medicaid trust attorney Christine Matus notes that both federal and New Jersey Medicaid law apply a five-year look-back period to certain long-term care applications. When determining eligibility, Medicaid reviews asset transfers made during the 60 months before the applicable eligibility date to identify transfers made for less than fair market value. If improper transfers are found, a penalty period of ineligibility is imposed, during which the applicant must pay for care out of pocket.
Matus points out that the penalty period is calculated by dividing the total value of improper transfers by the state’s penalty divisor, which represents the average daily cost of nursing home care. As of April 1, 2025, New Jersey’s penalty divisor is $420.67 per day. “Planning mistakes can cost families tens of thousands of dollars in care expenses,” Matus emphasizes. For example, a $100,000 transfer within the look-back period would result in approximately 237 days of Medicaid ineligibility.
Financial eligibility for New Jersey’s Managed Long Term Services and Supports program also involves strict limits. A single applicant can have no more than $2,000 in countable assets, with a 2025 monthly income limit of $2,901 for an individual. For married couples where only one spouse applies, the non-applicant spouse may retain up to $162,660 through the Community Spouse Resource Allowance, offering significant protection when properly structured.
Attorney Matus explains that certain assets are exempt from Medicaid’s countable limits. The primary residence may be exempt when the applicant’s home equity does not exceed the federal threshold established under 42 U.S.C. 1396p, along with one vehicle, personal belongings, and prepaid funeral and burial arrangements. “The home may be exempt during a person’s lifetime, but New Jersey operates an Estate Recovery Program that can seek reimbursement from the estate after the recipient’s death,” Matus observes. “Proper planning is often what protects the family home.”
Even during a crisis, several legal strategies remain available. Matus advises that spousal transfers are exempt from penalties, allowing an applicant to transfer assets to a community spouse without penalty. Families may also spend down excess assets on exempt items such as paying off a mortgage, making accessibility modifications, or prepaying funeral expenses. When income exceeds program limits, a Qualified Income Trust, sometimes called a Miller Trust, can help an applicant become income-eligible.
The Matus Law Group assists Ocean County families with these matters through the Managed Long Term Services and Supports program, which coordinates care through managed care organizations. To qualify, applicants must require a Nursing Facility Level of Care, meaning hands-on assistance with at least three Activities of Daily Living such as bathing, dressing, eating, transferring, or mobility. The program covers nursing home care as well as home-based services, allowing many individuals to remain at home rather than enter a facility.
The firm reviews five-year financial histories, develops strategies to maximize available spousal protections, and guides families through the application process with the Ocean County Board of Social Services. Serving families throughout Ocean County, Monmouth County, and across New Jersey from its Toms River office, the practice focuses on responding effectively when time-sensitive care decisions must be made.
For families facing a sudden need for long-term care, consulting a Medicaid planning attorney early may help protect assets and secure appropriate care. Legal representation varies widely in complexity and approach, and each case requires thorough review and an individualized strategy.
About The Matus Law Group:
The Matus Law Group is a Toms River, New Jersey-based firm focused on estate planning, elder law, special needs planning, and Medicaid trust matters. Led by attorney Christine Matus, admitted to the New Jersey Bar and the U.S. District Court in 1995, the firm serves families throughout Ocean County, Monmouth County, and across New Jersey. For consultations, call (732) 281-0060.
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Company Name: Matus Law Group
Contact Person: Christine Matus
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Phone: (732) 281-0060
Address:81 E Water St #2C, Toms River, NJ 08753
City: Toms River
State: New Jersey
Country: United States
Website: https://matuslaw.com/
