Planning for Medicaid qualification for long term care or nursing home residence is a key aspect of Elder Law. Mr. Siebert is a member of the National Academy of Elder Law Attorneys (NAELA) and is a member of AARP’s Legal Services Network, and is available to assist his clients through the complex process of Medicaid qualification.
MEDICAID PLANNING– The purpose of Medicaid Planning is to protect the nursing g home patient while preventing impoverishment of the at home spouse and preserving the family’s finances for the family’s future.
MEDICAID FACTS
- Proper Medicaid Planning allows your loved one to qualify for Medicaid and preserve their life savings.
- Through proper planning while getting you qualified for Medicaid Money can be set aside that can be used by the nursing home resident to purchase things for the nursing home resident that are not covered by Medicaid, such as clothing, barber or beauty salon, perhaps a big screen television.
- Proper planning allows you to use your assets to protect a disabled or special needs child’s future while still qualifying you for Medicaid.
- Proper planning may allow you to qualify for Medicaid while still leaving an inheritance for your children and grandchildren.
- A Medicaid patient receives the same level of care as that received by a private pay patient in any nursing home that accepts Medicaid.
- It is almost never too late to do effective Medicaid Planning, but the earlier it is done the more options are available.
- While Medicaid is a “spend down” program, with proper planning using various strategies and techniques it is possible to keep certain assets and transfer or gift other assets without disqualification for Medicaid.
- Medicaid limits the transferring of assets for less than fair market value, so don’t transfer or gift your property without proper legal advice to avoid Medicaid disqualification.
- Medicaid rules are constantly changing, and the rules that applied to your family members or friends who applied in the past may not apply to you.
MEDICAID MYTHS
1. I have to spend all my money before I will qaulify for Medicaid. FALSE. While Medicaid is a “spend down” program, you don’t have to be destitute or leave your spouse destitute to qualify for Medicaid. Certain assets and transfers are exempt from Medicaid spend down and by effective planning using these exemption allow you to qualify for Medicaid and still keep, transfer or gift certain assets to your love ones, .
2. You need to plan years in advance to do effective Medicaid Planning. FALSE While early planning allows greater flexibility and choices, it is almost never too late to do effective Medicaid planning.
3. You can gift up to $12,000.00 a year without affecting your Medicaid eligibility. FALSE . The $12,000.00 (up from $10,000.00) is the amount you can gift to an individual in any year without triggering gift tax consequences, but if you gift this amount without proper planning, you may be ineligible for Medicaid.
4. Property held in joint tenancy with my spouse or child is one-half theirs and not considered in determinig Medicaid eligibility. FALSE. Generally, funds held In joint tenancy with another are fully considered as assets of the Medicaid applicant unless you can show that the original source of funds or a portion thereof were supplied by other than the Medicaid applicant.
5. If I give any property away I have to wait three to five years to qualify for Medicaid. FALSE. With proper planning certain transfers may be made immediately prior to applying for Medicaid without affecting eligibility.
6. If I put all my property into my spouse's name I will qualify for Medicaid. FALSE. False. While Medicaid rules allow the transfer of certain assets and income to your spouse, if you make transfers outside or in excess of these you may well be Medicaid ineligible.
7. My assets are in my living trust and they are not considered when I apply for Medicaid. FALSE. Assets held in your revocable trust are considered your assets for purposes of Medicaid eligibility.
8. I can only spend down my assets on medical and nursing home bills. FALSE. While some nursing homes would have you believe that you have to spend all your savings on the nursing home at it’s private pay rate before qualifying for Medicaid, this is not true.
9. My power of attorney can automatically gift my assest for me if necessary to qualify me for Medicaid. FALSE. Generally, unless a Durable Power of Attorney has an explicit gifting power within it, your agent is generally limited to spending your money on your bills and selling your assets to raise cash to pay your bills.
10. All of my spouse's income must always be used to pay the nursing home bill prior to my spouse receiving Medicaid. FALSE. In fact, depending upon the community spouse’s income, part or all of the nursing home residence income may be transferred to the community spouse.
11. I can hide my assets and qualify for Medicaid. FALSE. Intentional misrepresentation on a Medicaid Application is a crime and can result in criminal liability for both you and to whom the asset is transferred.
