There are some important questions to consider when there is a chance that you will be in a nursing home in the years to come. You want to make sure your assets are protected completely.

Question 7: Medicaid income eligibility requirements: Can I transfer income and assets to my children before going into a nursing home and still qualify for Medicaid?

This is likely not possible. When applying for Medicaid you must understand that under the 60-month look-back Rule, Medicaid coverage can be denied if assets have been transferred within 60 months prior to applying for the benefits.  As described previously, if you were to gift or divest your assets to your children within 5 years of entering a nursing home and you apply for Medicaid online or off, you will be denied coverage until the money is returned.  The real problem comes in when the children spend the money and do not have it to give back in a situation like this one.

Question 8: Medicaid application: Is it too late to give away my assets and qualify for Medicaid if I am already in a nursing home?

It’s never too late to reallocate your assets. It is possible to give away all assets and then in 5 years become eligible for Medicaid.

Question 9: Should I make use of a trust to protect my assets?

It is much more beneficial to use an irrevocable trust instead of transferring assets to family members. Seek for the UltraTrust™ for superior irrevocable trust asset protection.

Question 10: How to apply for Medicaid: Are there other ways to protect my assets?

There are many ways to protect assets. Medicaid will not penalize anyone if they choose to spend their assets; however, one must be careful to avoid fraudulent conveyance. Fraudulent conveyance is the act of divesting your assets for less than a fair market value consideration or payment. An expert can walk you through a proper estate plan that will avoid these potential problems or contact Estate Street Partners.

Question 11: How can I protect my home?

Medicaid allows for the applicant to retain a principal residence. Your home is considered exempt property. However, unless there is a surviving spouse, Medicaid will be reimbursed if the home is sold after your death by a lien being put on the home. This is where it is advised to sell or transfer to an irrevocable trust such as the UltraTrust™

Question 12: Is it wrong to hide assets to qualify for Medicaid?

When applying for Medicaid, full financial disclosure is required. It is best to consult with an elder law expert before making any decisions or contact Estate Street Partners.

Question 13: Is this information reliable?

These are just a few questions that are commonly asked. When applying for Medicaid, it is always best to do the research. Find out what the current requirements are for eligibility in your state and consult with an experience attorney or contact Estate Street Partners to discuss your assets. States typically offer online information and forms that you may download and print, however no states allow you to currently apply for Medicaid online.  To get simple information about your state’s Medicaid application eligibility, forms, contact information, and address as well as an overview of your states plan, click here.

Question 14: Should I hire an expert?

Simply stated: absolutely. This is the best way to make sure laws are being followed and your assets are protected.

Question 15: How do I find an expert?

Any expert that practices elder law can help or contact Estate Street Partners. Make sure the expert is experienced and has a good rapport. You want to make sure you trust the right person with your assets.

Watch the video related to medicaid application

law, transferring the assets belonging to one spouse who is going into the nursing home to the well spouse is done without penalty. That means, that the spouse who is to go to the nursing home, can enter the nursing home and have Medicaid pay for it once the application is made. Many people to do not realize this, and so, it is a wonderful planning opportunity. However, this comes under the category of dont try this at home. It may be easy enough to transfer all of the assets from one spouse …

Help answer the question about medicaid application

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Learn how to protect your assets from potential frivolous lawsuits, preserve your wealth by recapturing lost tax dollars, defer capital gains taxes, eliminate inheritance taxes, reduce taxes on your income streams, eliminate probate and estate taxes. You will receive tax efficient wealth transfers to your next generation. We will utilize means of domestic LLCs and international offshore tax haven strategies and customize our program to meet your highest yield expectations and more. Contact us if you have any questions on asset protection or estate planning. Asset Protection Read more: Protect Assets Nursing Home Boston, MA: 71 Commercial Street #150 Boston, MA 02109
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Dollars & Sense

By Denice Gierach

As published in the Naperville Sun – February 18, 2007

As your parents get older, they may decide that keeping the large house is too much work and they may desire a change of lifestyle.  They may sell their house and then they decide to give some of the net proceeds to their children.  As time goes on, if their health declines, they may need nursing home care.  Can the gift that mom and dad made be spent or must it be held for a certain number of years?  How does this gift impact mom and dad qualifying for Medicaid in the event that they need nursing home care? 

The gift that you received from mom and dad can be used by you in any manner that you wish.  However, if your parents enter a nursing home, they could be left in a bind.  This is due to the Deficit Reduction Act, which was enacted last February, which tightened the rules for qualifying for Medicaid help with their long-term care after making gifts to family members.

The basic rules for applying for Medicaid to assist in the payment of the bills for long term care are that an individual must typically use up all but $2,000 of their cash and investments.  One way to accomplish this is for the parents to make gifts to someone else, usually to their children.  There were limitations on this practice in the past, which included a three-year “look-back” period, in which any gifts made within three years of the date that the individual tries to qualify for Medicaid assistance may be used to determine if they have met the threshold.  Under the past laws, a government regulator could examine gifts made in the past three years and assess a penalty. (If a parent spends down the amount for their regular living or medical expenses, the rules set forth in this article do not apply).

Under the new rules, this “look-back” period has been extended to five years.  The regulators now can examine any gifts made within that five-year period and then determine if a penalty should be assessed.

What kind of penalty can be assessed?  The penalty is a number of months that Medicaid will not pay for the long-term care that is necessary, such as nursing home care.  If a gift was made of $18,000 about a year prior to the date of application for Medicaid and assuming that nursing home care is about $6,000 per month, the penalty period would be a three-month window in which Medicaid would not cover the nursing home care.  Under the old rules, the penalty began from the date that the gift was made.  Under the new rules, however, the penalty begins on the date of application for Medicaid assistance.  This application date may be at a time when your parents are already in a nursing home and your parents do not have the funds to pay for the nursing home care.

One way to handle the penalty period is to have the recipients of the gifts pay for the nursing home care for the penalty period.  While no one can force the kids to return the money by paying the amount of the nursing home care, this may be the only way under current law to have a parent cared for in a nursing home setting.  Alternatively, while waiting out the penalty period, the kids may have to care for mom and dad in their own home.  If your parents had thought ahead, they may have purchased long term care insurance, which may help in offsetting the heavy cost of nursing home care.

 In making later life decisions, it is always good to plan far ahead.  Now, you just need to plan even further ahead in making the decisions that will be right for you and your family.

Watch the video related to medicaid application

Guiding Light For Seniors, Ltd. www.superpages.com Rockville Centre, NY Change From Home Care To Nursing Home Medicaid , Clarify Unresolved Medicaid Issues , Medicaid Application Processing , Medical Application Processing , Pay for Long Term Care , Referrals and Resources … idearc superpages Change From Home Care To Nursing Medicaid Clarify Unresolved Issues Application

Help answer the question about medicaid application

About Author

Denice Gierach is a lawyer and owner of The Gierach Law Firm in Naperville. She is a certified public accountant and has a master\’s degree in management. She may be reached at deniceg@gierachlawfirm.com. For more information on Denice and The Gierach Law Firm visit Gierach Law Firm

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