Asset Protection and Medicaid
Nursing home care typically costs $7,500-$10,000 per month. Most Senior Citizens find that their income falls well short of this cost. An analysis of the options for preservation of assets is warranted when long term care is contemplated. Asset Protection (Medicaid planning) techniques are available to married persons to ensure that the spouse living in the community is able to maintain his or her standard of living while caring for a spouse in the nursing home. We work with families to allow family wealth to augment government benefits, such as Medicaid, so that family wealth augments rather than supplanting government benefits. Such use of family wealth assures that the Senior will receive the best quality of care.
An analysis of the options available entails the client and the attorney working together to compile, organize and evaluate the assets, income, legal documents and family information in order to apply the situation to the law. After such analysis, the client is better aware of the options available and a time frame for implementing a plan.
Medicaid Basics
- Applicant asset limit for 2012 is $2000.
- Applicant's income limit for 2010 is $2,094.
- Applicants with income which exceeds limit must have a Qualified Income Trust
- Community Spouse asset limit for 2012 is $113,640.
- Community Spouse may have any amount of income.
- Applicant must need skilled care to qualify for the ICP Medicaid program as determined by the CARES team; from the Department of Children and Families.
- Community spouse should have a testamentary Qualified Special Needs Trust to avoid spend-down on applicant's care in the event that the Community Spouse predeceases the applicant.
- Community Spouse may receive a portion of the Applicant's income depending upon the community spouse's own income and shelter expenses. If the amount that the state diverts to the spouse is insufficient to meet budgetary needs, court orders may be sought to raise the community spouse's income.
- Gifts impact eligibility! Before gifting funds or real estate be sure to know all of the ramifications. Alternative arrangements can be made that will allow children who are assisting with care to be properly compensated.
If you would like to schedule an asset protection analysis, please call (239) 434-8557 to schedule an appointment. If you are not located in Naples and you are calling for a loved one one who lives here, a telephone consultation may be arranged.
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