Medicaid exempt assets: What Federal and State Laws grant

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PostPosted: Fri Oct 15, 2010 6:21 pm   Post subject:   

Not the invested money, but distributions, including any Required Minimum Distributions, are a countable asset in the month received, and must be spent down as part of the "community" spouse's "allowance" each month.



Yes, it sucks! But that's our government at work.



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PostPosted: Thu Oct 28, 2010 2:35 am   Post subject: Anniversary Ring  

Dad is on Medicaid and lives in a nursing home here in Portland. Mom is living by herself at her own home. My sister is in an adversarial position within the family and is dad's guardian and conservator for dad. My brother, myself, mom and dad fought her becoming guardian but she was granted guardianship by the judge. Mom gave dad a ring for their 50th anniversary (they are now married 63 years). My sister has taken the ring from dad and won't give it back to mom because she claims that she is "protecting one of dad's assets". Mom would like the ring back, has requested to have the ring and is willing to sign a voucher for receipt of the ring. Can we get the ring back for mom, and how might we approach that?


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PostPosted: Fri Oct 29, 2010 12:55 pm   Post subject:   

Can't imagine the family put on such a weak case that Sis ended up as guardian. Since this started in court, it will have to end in court. You need a MUCH BETTER lawyer than you had before and you need to fight to change the guardian, or at least get a court order to force Sis to divest of the ring.



This will be messy, expensive, and divisive. Although it sounds like the divisive part has already been taken care of.



After 63 years of marriage, I'm guessing Mom and Dad are well into their 80s. Most judges would not be so dispassionate that they would reject Mom's request to have the ring back. Problem is, Sis may have "safeguarded" Dad's assets into someone else's hands for cash that she has absconded with. And if the cash is long gone, so is Dad's ring.



I don't envy your situation.



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PostPosted: Fri Oct 29, 2010 5:42 pm   Post subject: commision allowed for estate sale?  

My husband is his mothers P.O.A. and just sold her house to pay for her nursing home costs. We were told that he is allowed a percentage of the house sale for handling all the details of the sale. Does anyone k.ow anything about the rules on this?


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PostPosted: Sun Oct 31, 2010 4:16 am   Post subject:   

It may be governed under your state's laws. In California, something along this line would be found in the Welfare & Institutions Code. After a person's death, information would be found in the Probate Code.



It's unfortunate that your husband chose to sell his mother's home now. She would probably have qualified for Medicaid assistance in paying the institutional costs, even though it's kind of a wash. Selling the home in the future, even by only a year, might have given enough time to begin to swing the pendulum back to the prosperity side.



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PostPosted: Thu Nov 04, 2010 4:46 am   Post subject:   

I live in ga. Are prepaid buriel expenses exempt up to $10,000 under medicaid



Is you home exempt up to $500,000.


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PostPosted: Thu Nov 04, 2010 6:09 am   Post subject:   

The home is exempt from the SPEND DOWN test in order to qualify for benefits if the person applying for benefits "intends to return to the home" after his disability is resolved AND the equity in the home is less than $500,000 (up to $750,000 in some states). Obviously, some people will never return home, even though it is their "stated intent." Medicaid is not entirely concerned about that.



However, every dollar of benefits paid by Medicaid on behalf of a person age 55 or older is recoverable following the person's death. They can put a lien against the home to satisfy the debt owed to Uncle Sam. They will not attempt to collect as long as a spouse or minor child of the decedent continues to reside in the home.



Burial expense contracts are exempt as long as the contract is IRREVOCABLE (proceeds usually payable to the mortuary/cemetery). Up to $1500 in a cash burial account is also exempt.



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PostPosted: Tue Jan 11, 2011 8:01 pm   Post subject: Medicaid exemptions  

In October, 2010, my mother was given a Social Security retro benefit of about $3000 from 1982 to 9/2010. I understood that this was not counted within her assets so long as she spent it within a year. It looks like Medicaid did count it, but I would like to find out where in the rules it says that it didn't count. Help please!


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PostPosted: Wed Jan 12, 2011 2:34 am   Post subject:   

Quote:
In October, 2010, my mother was given a Social Security retro benefit of about $3000 from 1982 to 9/2010. I understood that this was not counted within her assets so long as she spent it within a year




Where did you get this "understanding" from? Medicaid looks at INCOME from all sources, including Social Security (even though Medicaid is funded itself with Social Security dollars). A retroactive payment of $3000 (for 28 years? what kind of ridiculous payment is that? -- did they underpay her by $8 per month in all those years? -- makes no sense to me) is "current income" above and beyond the $35 monthly allowance, and, as far as I know, must be counted toward fulfilling the spenddown requirement.



If someone from the Social Security Administration told you/your mother that the money would not count toward the spenddown test, then have someone in the SSA provide the documentation to you.[/quote]


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PostPosted: Mon Jan 17, 2011 4:00 am   Post subject: Exempt Personal Property For Medicaid  

Can expensive jewelry and antique furniture be used as a way to preserve assets so that they don't fall into the medicaid non exempt catagory and thus qualify for medicaid but still allow something of value to pass to heirs?


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PostPosted: Mon Jan 17, 2011 9:08 pm   Post subject:   

"Personal jewelry" (wedding rings, similar items) are exempt from the spenddown test, most other jewelry is not. Furniture and antiques definitely are not exempt property. If you want to preserve assets outside the estate, they must be properly placed in a trust at least 60 MONTHS prior to an application for benefits under Medicaid. Anything less than 60 months, and the whole plan fails.



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PostPosted: Fri Jan 28, 2011 5:43 pm   Post subject: exemptions  

Are Varriable Annuities exempt from cash that is claimed on Medicade?


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PostPosted: Sun Jan 30, 2011 12:49 am   Post subject:   

Quote:
Are Varriable Annuities exempt from cash that is claimed on Medicade?




Annuities -- variable or otherwise -- are ONLY exempt from the countable assets if they have been annuitized or are holding qualified plan (IRA/401(k)/403(b)) assets. The cash value in any insurance contract is a countable asset except for $1500 for burial expenses.



If an annuity has been annuitized, the periodic income must be spent down as part of the "share of cost" formula that permits the Medicaid beneficiary a $35 monthly allowance.



If an insurance agent sold you an annuity with the understanding that it would protect the assets from the spend down test, you may be able to void that contract and obtain a full refund of all premiums paid.


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PostPosted: Tue Feb 01, 2011 6:48 pm   Post subject: auto purchase before applying for medicaid  

Can my mother buy me car to visit her in her nursing home? Will that be considered a noncountable asset when she applys for medicaid? Does the car and insurance need to be in her name or could it be mine.



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PostPosted: Tue Feb 01, 2011 10:52 pm   Post subject:   

Quote:
Can my mother buy me car to visit her in her nursing home?




As long as you don't use the car for any other purpose.



Seriously? Are you unable to provide your own transportation to visit your mother in a nursing home? This almost sounds like what we call in California ELDER FINANCIAL ABUSE.



Your mother may buy a car in her name and allow you to use it. She is allowed to keep one vehicle in her "noncountable assets" column. The value of all other vehicles she owns will be included in her "countable assets" and subject to the spend down test. She can keep the Lamborghini in her noncountable assets, and your new Kia will be in the countable column.



If she buys a car for you as a gift, the value of the gift in excess of $13,000 creates a GIFT TAX LIABILITY for your mother, and the entire purchase price of the vehicle could be viewed as an unlawful attempt to qualify for Medicaid (gifts within 60 months of application), resulting in the need to spend down an equivalent amount of cash assets (that she may not have) in order to qualify for Medicaid.



So do the right thing. Buy your own car and visit your mother at least five times a week in the nursing home.



Or, better yet, take care of your mother in her old age, like she did for you as an infant. The services are about the same, only she's a lot larger as an adult than you were as a child, so it requires a bit more effort on your part.



Payback's a b****! Rolling Eyes


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