Do I Need to Spend All My Assets to Get Approved For Medicaid?

Posted by

Let’s say this theoretical couple with $100,000 can see down the roadway that the requirement for long term care is coming. Possibly one of them has Parkinson’s disease or Alzheimer’s. If they hand out $50,000 to their kids, how does Medicaid look at that?

Again, timing is essential. If you are discussing wanting to request Medicaid soon, handing out your money is not a great idea. You should not do this unless you make sure that you will not need to look for Medicaid for at least five years.
What if the circumstance is “My spouse remains in the assisted living home now and starting next week I am going to be on the hook for $6,500 a month. What do I do?”

In that type of a case, we establish the constant period of care and we develop what your properties are. That informs us what you have to invest in order to get approved for Medicaid. Let’s say you have a house and a car and some other prized possessions. The house and automobile are not counted; they are thought about “exempt.” The remaining assets could be any combination of things: his Individual Retirement Account, your Individual Retirement Account, an inspecting account, a little pot of gold in the basement, money, some stock, an annuity, the cash value of a life insurance coverage policy, a 2nd car, and so on. That all gets added together. If it’s $100,000 your hubby can’t get Medicaid till that $100,000 is decreased to $50,000. And there are no rules that state how you invest the cash– except that you can not offer it away.
If you do provide it away, you’re going to produce an ineligibility period for Medicaid.

There are two exceptions:
If you have a disabled child, you are permitted to make presents to the handicapped child– any quantity, any property.

If you have a daughter or son who resides in your home with you and offers care that keeps you out of a retirement home for at least two years, you are allowed to give your home– and only your home– to that care-providing daughter or son. Not grandson, not granddaughter, not uncle, not cousin, not next-door neighbor– child just.