Caught in the Middle - Estate Planning Considerations for the Sandwich Generation
By Britt Burner, Esq., Burner Prudenti Law, P.C.
Trust & Estates Expert Contributor, Greater Westhampton Neighbors, November 2026
Have you ever heard the term "sandwich generation"? You may be part of it.
Many adults in their 40s and 50s are balancing the responsibilities of raising their own children while also caring for aging parents, aunts, and uncles. These individuals make up the sandwich generation. Beyond medical appointments and day-to-day caregiving responsibilities, adult children are often helping their parents navigate the financial and legal challenges that come with aging, disability, and eventually, their death.
This is a crucial time for the “Sandwicher" to work on their own estate plan as well as help guide their parents through any estate planning that may be necessary as they age, downsize, or need additional assistance. It also becomes increasingly important to ensure that appropriate legal and financial plans are in place to address future care needs and protect family assets.
Planning for the potential of needing long-term assistance with daily needs can generally be approached in three ways.
First is self-funding; this means having sufficient assets and income to pay for care expenses directly.
Second is insurance, such as long-term care insurance. Unfortunately, many individuals do not consider this option until it is too late. Age, health concerns, and rising premiums can make obtaining coverage difficult or prohibitively expensive.
The third option is to seek assistance through the Medicaid program. For many families, Medicaid can be an essential resource for covering long-term care expenses, but qualifying for benefits often requires advance planning.
Asset protection strategies are frequently used to help preserve eligibility for Medicaid while safeguarding certain family assets. Additional planning may also be necessary to ensure those assets remain protected after death. Even though advance planning is suggested, all is not lost for those that fail to get a head start. Transfers between spouses are not penalized and, while nursing home coverage has a five-year lead time on the movement of assets out of the applicant’s name, community Medicaid to cover home care services does not penalize transfers made right before application.
One tool that is often used to protect certain assets, especially a primary or secondary residence, is a Medicaid Asset Protection Trust (MAPT). A properly drafted MAPT can provide significant flexibility while protecting assets such as a primary residence, vacation property, or other valuable holdings. To achieve these protections, however, the trust must meet specific legal requirements. Generally, someone other than the individual or their spouse must serve as trustee, and the trust must prohibit the use of principal for the benefit of the owner.
For example, the “Sandwicher” can be the trustee of the trust for their parents, while the parents maintain the exclusive right to live in the property and remain responsible for all daily expenses. When implemented as part of a comprehensive plan, this strategy can help protect a significant asset from being counted for Medicaid eligibility purposes.
Regardless of the method used to fund long-term care, all adults should consider a comprehensive durable power of attorney. For older adults, it is often advisable to have any existing powers reviewed and potentially updated to a broad power of attorney that includes the ability to gift, as this can be critical in facilitating estate tax planning, Medicaid planning, trust funding, and probate-avoidance strategies.
Being a member of the sandwich generation is not for the faint of heart. Caring for loved ones while managing the needs of your own family can be emotionally, physically, and financially demanding. While no estate plan can eliminate the uncertainty that accompanies a medical crisis or a loved one's decline, thoughtful planning can help protect assets, reduce stress, and provide peace of mind during an otherwise challenging time.
Britt Burner, Esq.
Burner Prudenti Law P.C.
(631) 941-3434
info@burnerlaw.com
www.burnerlaw.com
@burnerprudentilaw_pc
Britt Burner, Esq. is the Managing Partner at Burner Prudenti Law, a women-owned law firm serving clients from New York City to the East End. The firm concentrates in the areas of Elder Law, Estate Planning, Trusts and Estates, and Real Estate Since joining the firm in March 2014, Britt has been the driving force behind the firm’s Manhattan office, focusing her practice on elder law and estate planning.