NO. Medicaid planning is no more illegal than seeking the advice of an accountant or tax attorney to minimize your income taxes. The government sets the law for taxes and for qualifying for Medicaid. These requirements change on a regular basis. It is important to seek the advice of a competent professional in order to take advantage of all the law allows.
An estate plan is a comprehensive plan by which a person plans how her assets are distributed after her passing. A proper estate plan accounts for estate taxes, probate costs, medicaid law, and veterans affairs law. A proper estate plan memorializes your wishes as to your personal health care in the event you become incapacitated or are otherwise unable to communicate your wishes to the medical professionals that are providing you treatment. Your estate plan should include a financial power of attorney so that in the event you are incapacitated a trusted friend or loved one can pay your bills and/or protect your assets while you are unable. Many estate plans further provide instructions as to your personal preferences and desires in the event you were placed in a nursing home or assisted living facility.