Frequently Asked Questions
1.
Do I have to “spend-down” my assets to $2,000 before I qualify for
Medicaid?
No. The Medicaid program
allows for your assets to be repositioned prior to qualifying for Medicaid
benefits. This does not require you
to deplete your assets. Depending
upon which state you live in, exempt assets could be purchased or your assets
could be gifted to a family member and you could still qualify for Medicaid
benefits.
2.
Do I have to transfer all my assets into another’s name 30 months prior
to applying for Medicaid benefits?
No. Depending upon the rules in your state,
if the assets are properly transferred, you may still qualify for Medicaid
benefits in the same month that you transfer all your assets.
3.
I own a home and have been receiving Medicaid benefits. Can the state take my home at my death?
In many states, at your death
the state can place a claim against your estate for reimbursement of Medicaid
benefits paid on your behalf during your lifetime. Nevertheless, in most states
a Medicaid estate claim can be prevented with proper planning.
4.
My home is titled in the name of my revocable living trust. Can the state still place a Medicaid
claim against the home at my death?
Yes. A revocable living trust does not
protect you from your creditors.
Medicaid is a creditor and will place a claim against your home at your death in
most states. Nevertheless, this
claim can be prevented with proper planning.
5.
I am above the Medicaid limits, but all my assets are in a revocable
living trust. Do I qualify for
Medicaid benefits?
No. Even if you have a revocable living
trust and all your assets are titled in the name of the trust, you still own the
asset.
6.
My house is in titled in my name and my son’s name as joint tenants. Can
Medicaid still place a claim against the home at my
death?
Yes. In most states Medicaid can place a
claim against your one-half interest in your home. This claim can be avoided with proper
planning.
7.
I heard that you could place all your assets in an annuity and qualify
for Medicaid benefits. Is this
true?
It depends. Some annuities are exempt for Medicaid
eligibility purposes. Nevertheless,
not all annuities are exempt for Medicaid purposes. In addition, you may face early surrender fees and adverse
income tax consequences by liquidating your assets from their current holding
and transferring them into an annuity.
8.
Do I have to get divorced so that my wife can qualify for Medicaid
benefits?
No. Generally, many planning options exist
so that you do not have to divorce your spouse in order to protect your assets
9.
Will Medicaid pay for my cost of care in a board and care?
No. Although Medicaid benefits are available
for people not living in a nursing home, these benefits do not include the costs
of room and board while living in a board and care. In most states, Medicaid
will cover the cost of medications and some personal assistance while you are
living in the community
10.
My husband is living in a nursing home.
Our combined income is over the Medicaid limit, does he qualify for any
benefits?
Each state administers their
own Medicaid program differently.
In many states your husband could qualify for Medicaid and the amount of his
income that exceeds the Medicaid limit would go to the nursing home to pay his
share of cost.
11.
My husband and I have only been married for five years. We have always kept our assets separate. Do my assets still count?
Yes. Even though you have kept your assets
separate, as long as you are legally married, both spouses’ assets count towards
the Medicaid property reserve.
12.
I know I can make gifts of $10,000 per person, per year and still qualify
for Medicaid, correct?
No, the $10,000 per person,
per year annual exclusion gift limitation is part of the federal estate tax
system. The $10,000 W9 increased to
$11,000 on January 1, 2002. These $11,000 gifts are not
subject to gift tax. Nevertheless, the $11,000 gift is a penalty transfer for
Medicaid purposes.
13.
My spouse is living in a nursing home, do I have to liquidate my
Individual Retirement Accounts in order to qualify for Medicaid?
No. Work related retirement
accounts held in the name of the community spouse are exempt for Medicaid
eligibility purposes. Nevertheless,
depending upon your state, the community spouse may or may not have to take
mandatory distributions.
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