How would you choose long-term care?
Usually, LTC recipients of Medicaid are usually those who are aged or from the disabled group, but there are only a handful who receive SSI and yet opt for LTC.
What are the assets exempted under Medicaid and LTC?
The following are Medicaid exempt assets:
- A house but only when you (the applicant) are likely to return home. Your home may also be among Medicaid exemptions if your spouse, or a child under the age of 21 years or a child over the age of 21 years but disabled, or a brother/sister owning part of the house and having resided there for at least 1 year continues to live in that house.
- Essential items like furniture, appliances etc.
- Personal items like jewelry, clothing etc.
- Burial plots
- Funds for burial up to $1500 each in case you are married and $1200 if you are a single applicant.
- A cash surrender value in a life insurance. This is possible only when the face value of the policies together is less than $1500. However, term life insurance does not have a cash surrender value and hence is totally exempt.
Related readings:
There are 25 states with Long Term Care Partnership Programs.
This is significant legislation as a person can now LEGALLY exempt their assets from nursing home and Medicaid spend down by simply obtaining Long Term Care insurance.
Click HERE to read Florida Statute 409.9102.
(b) Provide a mechanism to qualify for coverage of the costs of long-term care needs under Medicaid without first being required to substantially exhaust his or her assets, including a provision for the disregard of any assets in an amount equal to the insurance benefit payments that are made to or on behalf of an individual who is a beneficiary under the program.
(4) The Department of Children and Family Services, when determining eligibility for Medicaid long-term care services for an individual who is the beneficiary of an approved long-term care partnership program policy, shall reduce the total countable assets of the individual by an amount equal to the insurance benefit payments that are made to or on behalf of the individual.
States with Partnership Legislation:
Arkansas
Iowa
NorthDakota
Colorado
Maryland
Ohio
Florida
Massachusetts
Oklahoma
Georgia
Michigan
Pennsylvania
Hawaii
Missouri
Rhode Island
Idaho
Montana
Virginia
Illinois
Nebraska
Washington
New York
Indiana
Connecticut
California
Posted: Thu Oct 28, 2010 02:35 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?
Posted: 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.
Posted: Fri Oct 29, 2010 05:42 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?
Posted: Sun Oct 31, 2010 04:16 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.
Posted: Thu Nov 04, 2010 04:46 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.
Posted: Thu Nov 04, 2010 06:09 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.
Posted: Tue Jan 11, 2011 08:01 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!
Posted: Wed Jan 12, 2011 02:34 am Post Subject:
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]
Posted: Mon Jan 17, 2011 04:00 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?
Posted: Mon Jan 17, 2011 09:08 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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