I have always told my clients and readers of this column that if I saw an imminent Medicaid law change was coming, I would alert you. Consider yourself warned. Now is the time to implement  that asset protection plan you have been considering to protect yourself and your family. In reading the tea leaves in Washington, it seems that Medicaid (one of the largest and most  expensive federal programs) could be due for some big changes. What can you do ?  Get “grandfathered”. 

Like so many of my clients, my family means everything to me, and I want to pass something  onto them. 

I have been blessed to be the “grandfathered” of my 5 year old granddaughter, Victoria “Vika” Tully, but when I say grandfather I am talking about making legal transfers of assets prior to any law change. You would be “grandfathered” under much more favorable laws, than currently exist. 

Grandfathering is a legal principle that allows existing rights, privileges, or regulations to remain  in effect for certain individuals or entities, despite the introduction of new laws or changes in  regulations. This concept is often applied in various contexts, including property rights, business  regulations, and environmental laws. The essence of grandfathering is to provide a transitional  phase that protects the interests of those who were compliant with the previous regulations,  ensuring they are not unduly burdened by sudden changes in the legal landscape. 

The term “grandfather clause” originated in the late 19th century in the context of voting rights,  where it was used to exempt individuals from literacy tests and other voting restrictions if their  grandfathers had been eligible to vote before the Civil War. This historical context reveals the  complexities and potential inequalities inherent in grandfathering laws, as they can perpetuate  existing privileges while excluding new entrants. 

This is exactly what happened in 2006 when the Medicaid Program was changed from a three  year “look back” to five years. Those who transferred homes and assets before the law change  date were able to protect their assets in a shorter period of time. You do not want to look back  years from now and say I wish I had made transfers in 2025, when the laws were much more  

favorable. 

The concept of grandfathering is not without controversy. Critics argue that it can create  inequities, allowing certain individuals or businesses to maintain advantages over newcomers  who must comply with stricter regulations.  

While grandfathering laws serve to protect established interests, they also raise important  questions about fairness and equity in the evolving legal environment. Balancing the rights of the  old with the needs of the new remains a critical challenge for lawmakers.