3 Things You Should Never Sign Without Talking to a Certified Medicaid Planner(TM)
Apr 07, 2025
When a loved one moves into a nursing home or assisted living facility, the pressure is real—and so is the paperwork. You’re doing your best, they need care, and suddenly you’re staring at a pile of documents someone wants you to sign right now.
But here’s the deal: some of those forms can seriously backfire if you don’t know what you’re signing.
Before you put pen to paper, here are three documents you should never sign without first talking to a Medicaid planning professional—someone who knows how to protect your loved one’s care and your family’s finances.
- A Personal Guarantee to Pay the Facility
This is the big one. Nursing homes are expensive—$8,000 to $15,000 per month expensive. And some facilities will try to sneak language into the admissions paperwork that says you personally agree to pay the bill if your loved one can’t.
Why It’s a Problem:
Signing this—even by accident—could mean the facility comes after your bank account, not just your loved one’s. It often appears in a section called “Responsible Party” or “Guarantor.” These sound like harmless labels, but read the fine print. If you agree to be financially responsible, you could be legally liable for thousands.
âś… Plain English Tip: Never sign anything that makes you financially responsible. Cross out language that sounds like a personal guarantee, and only agree to manage funds in your role as power of attorney or health care agent—not with your own wallet.
- A Statement Saying Your Loved One “Does Not Intend to Return Home”
This type of form can show up in hospital discharge paperwork or during a Medicaid application. It asks you (or your loved one) to check a box saying they don’t plan to go back home.
Why It’s a Problem:
That one checkbox can lead Medicaid to count the home as an available asset—meaning it might disqualify your loved one or trigger estate recovery later. The intent to return home, even if unlikely, can be enough to protect the house under federal Medicaid rules. Giving that up in writing can be a costly mistake.
Example: In North Carolina, there’s a form called DSS-5159 that asks this exact question. Other states have their own versions.
âś… Plain English Tip: Don’t make that call without advice. Even if your loved one is unlikely to return home, signing away the possibility could lose a major Medicaid exemption. A planning professional can help you weigh your options.
- A Medicaid Application
This one surprises people. You’re trying to get Medicaid—shouldn’t you fill out the form and get it over with?
Not so fast.
Why It’s a Problem:
Submitting a Medicaid application before the right steps are taken can lead to a denial, a penalty period, or months of unpaid care. The moment you apply, the clock starts ticking—and if your loved one has too many assets, or transferred money in the past 5 years, things can go south quickly.
Worse yet, applying too early can block strategies that might have preserved tens or hundreds of thousands of dollars in assets.
Even worse than that, if you go to the Medicaid office “to get answers,” personnel will often ask you to fill out and sign a form to supposedly help you get answers, and only after signing tell you that it was a Medicaid application and it is now denied.
âś… Plain English Tip: Medicaid is about more than filling out a form—it’s about having a plan. Get advice before you file anything. There are often legal, ethical ways to protect assets and qualify faster than you think.
Wrapping It Up
You love your family, and you’re doing your best. But when it comes to long-term care paperwork, well-meaning mistakes can get very expensive, very fast.
So before you sign:
- ❌ Don’t guarantee the bill.
- ❌ Don’t give up the house.
- ❌ Don’t rush the application.
âś… Do talk to a Medicaid planning professional who can help you navigate the system and protect what matters most.
Need a second set of eyes before you sign anything? Start with a no-pressure consultation by calling The Care Assistance Center, LLC and setting a phone appointment at 919-518-8237, and learn more about planning around long term care at www.FreeMedicaidCourse.com.
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