Do I Need to Spend All My Assets to Certify for Medicaid?
So, let’s state this theoretical couple with $100,000 can see down the road that the need for long term care is coming. Maybe one of them has Parkinson’s illness or Alzheimer’s. If they offer away $50,000 to their kids, how does Medicaid look at that?
Once again, timing is necessary. If you are discussing wanting to look for Medicaid quickly, providing away your money is not a great concept. You should not do this unless you are sure that you will not need to look for Medicaid for a minimum of five years.
What if the situation is “My partner is in the nursing home now and beginning 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 develop the continuous duration of care and we establish what your properties are. That tells us what you have to spend in order to qualify for Medicaid. Let’s state you have a house and an automobile and some other prized possessions. The house and vehicle are not counted; they are considered “exempt.” The staying properties might be any combination of things: his IRA, your IRA, an inspecting account, a little pot of gold in the basement, cash, some stock, an annuity, the cash value of a life insurance coverage policy, a second cars and truck, and so on. That all gets combined. If it’s $100,000 your partner can’t get Medicaid until that $100,000 is minimized to $50,000. And there are no rules that say how you spend the loan– other than that you can not give it away.
If you do offer it away, you’re going to produce an ineligibility duration for Medicaid.
There are 2 exceptions:
u2022 If you have a disabled kid, you are permitted to make gifts to the disabled kid– any quantity, any possession.
u2022 If you have a daughter or son who resides in your house with you and provides care that keeps you out of a retirement home for at least 2 years, you are allowed to give your home– and only the home– to that care-providing kid or child. Not grand son, not granddaughter, not uncle, not cousin, not neighbor– child only.