How will Medicaid assess a healthy spouse's inherited resources, to be split among 3 siblings over the next 2-3 years?

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Spouse goes to SNF. Resources left by Mom: house about $240K, $150K mutual funds, a mix of CD/IRA worth about $25KK. All heirs live in different states. A Trust was formed by parents about 10 years ago. Some assets are in process of distribution in 2015. The house will remain a rental so rental proceeds must be allocated between the 3 heirs. Both personal and estate income taxes were filed for Mom in 2014. We may need to do a 2015 tax return for the trust. The heir who's spouse may go to the SNF is also executor of the estate. We are all concerned Medicaid will have loopholes that stretch beyond the immediate resources of the affected couple. There was no time to "plan" as one died and the other became too injured within a few months and may not be able to return home, triggering the Medicaid process.

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if community spouse receives inheritance can medicaid take money to pay for husband in nursing home?
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Concerned54 - All Resources - half is applied as his, + half as hers in our state. Some resources are counted "to the extent of the snf resident's equity interest". Your aunt is now an snf resident from you're saying.
If you and aunt have jointly owned funds, at least half will likely be counted for Medicaid eligibility. Original and sole owner/s of the Mutual fund? If it's both of you it may be half hers/yours? Has it been sitting/growing or were there contributions made throughout the years and by whom? "Name on the check" rule - does that apply in your case? Medicaid eligibility information obtained listed assets that "might" or "must" be spent down. I was told much has to do with how easily and quickly a resource can be cashed out and spent. I wouldn't do anything with the funds while she's trying to become Medicaid eligible. I would be concerned that Medicaid would consider her to be "moving" money and that would count negatively for her.
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IF the spouse is already on Medicaid when the Executer inherits money it should be considered income or property of the Community Spouse. Assets held by one party d not count for the Medicaid party. Advise them to see a lawyer who specializes in Medicaid law.
Income from annuities and other investments that come to her directly are the property of the Community Spouse in the State we live in.
Example......
Couple where he is 87 and has Dementia. She is 55 and is still working and living in the home.
He needs round the clock care so she sees an attorney who sets all the
450,000$ in liquid assets into an annuity that pays her 6,000 a month. He lives on 2,000 a month and gets approved for Medicaid.
I have no idea if that was her money or his money or joint money. But its hers now.
Good Luck
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Contact your local Medicaid office and ask if you will be considered owner of
1/2 of the fund or if the entire fund is subject to Estate Recovery.
Good Luck
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I have jointly held mutual fund with an aunt for over 20 years. She is now in a nursing home and applying for Medicaid. How can I protect my share of the fund?
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another aspect to consider, is if it is a community property state (the heir now ill & possible Medicaid, with spouse). Yes, check with an attorney! this is way too complicated to rely on "guesses" on AgingCare dot com.
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When someone dies with outstanding debt, their debt must be settled before money is passed on to their heirs. Once this has been done, each heir will receive their share according to the will or however it is set up. Then if one of the heirs has to go into a SLF (or their spouse) it is up to that heir to cover their cost. If the heir places the inheritance into an account free of the spouse, the heir may not be liable for the cost of the nursing facility for the spouse. This is not commingled funds. However, I would check with a lawyer on this one. I am not positive about this but I do know you can inherit money and as long as it is not commingled with your spouse, the spouse has no rights to that money.

However, see an attorney.
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See a Medicaid Planning Attorney, If the share of the estate is inherited by you alone and is in your name, it may be considered your income or asset not your spouses.
Pre- planning saves money and headaches.
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Houseplant, you need an attorney as well as an accountant. I am neither, but the little that I do know, has me questioning these items, in no particular order---"The Trust and not Mom is "owner" of the house"-- Medicaid in some states overrules Trusts (these assets could still be considered countable), that would be something an attorney could answer, for your state. I am going to put in multiple dashes to separate things (I can't get the paragraphs to work on this forum).
----"Some money needs to be saved to take care of the rental house"----Medicaid doesn't care one iota that the heirs may want to rent out the house, it views it as an asset; if your mom's name is on it (again it varies from state to state about the Trust) then it might be a countable asset.
----"it seems this heir's spouse may be penalized"----Medicaid doesn't care one iota about the family split or anybody feeling that someone is "penalized" they just want the MERP to move along and get the state's money back.
----"The well spouse's money will hopefully be viewed as seperate ownership"---if the well spouse receives $50,000 that will be counted as part of their approx. $114,000 Community Spouse asset allowance. And if Executor wants to try and "preserve" the 1/3 inheritance, somehow, and Medicaid caught a whiff of what was happening.....again here you need the advice of an attorney; perhaps someone else of the 3 kids is going to need Medicaid? You can't keep going down the road of "we wanna inherit" eventually, any assets anybody has, PLUS anything they might inherit, are to be used for their care.
----Conclusion-----you need to seek expert advice from an attorney who knows your state's Medicaid inside out & backwards. Don't be so anxious about your situation, there are many many millions of people who have NOTHING. Be happy that your family apparently has something, and USE some of your assets to figure out this complex situation and if possible, "protect" it. Quit thinking that someone is getting "punished", be pro-active, and "PROTECT" it. Put your energy into a good solution---with a good attorney (not just ANY attorney, make sure they know Medicaid in your state....not all do!).
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The first parent died over 2 years ago at home so there was still enough left. The health of the remaining spouse was more complicated, beyond what family could take care of. Now both have died, so some of the money is being used to pay medical. As I wade through some statements, the CD/IRA is about $21,000.00. Mutual funds are about $130,000.00. The house is about $240,000.00. Some money needs to be saved to take care of the rental house. If the easily reachable funds can be used for her care without having to sell the house, the rental income continues to get split between 3 heirs each month. Around $50,000.00 to 3 heirs came from a mix of trust funds and accounts outside the trust in the past year so we don't know if heirs may be penalized. The Trust and not Mom is "owner" of the house. The trust is still intact with the home being the primary asset at this point. It seems the home may be able to be kept by the 3 heirs. When the spouse of one heir needs SNF for a period of time, the uninjured spouse is in a position to inherit some resources. We're trying to figure if the well/unijured spouse will loose a share of property if Medicaid counts that in with the couple's regular income. Would this put the 2 remaining heirs at risk so that Medicaid can get the money for the 3rd heir? With 3 heirs and the spouse of one possibly needing SNF, it seems this heir's spouse may be penalized. Even though it's the heirs spouse who needs the nursing home. This also gets into the practices of how much is joint or individual property. The spouses generally aren't left much of their own, but having to give up the monies when it from the other's family doesn't seem right. Medicaid is looking at the heir's information with about as much time and energy used for this couple's resources. So the injured spouse would hopefully count only his money for his care. The well spouse's money will hopefully be viewed as seperate onwership and not be vulnerable to loosing the third of the family's remaining resources. The best hope is that all bills from Mom can be paid from her rosources and that heirs would get to keep their share of the house and any income it might produce without having it levied by the state. Parents always worried they might outlive what they had, but toward the end she started distributing - before there was any obvious need to plan for a SNF stay for her. Now we have the worry of the injured spouse requiring a lot of care for this year at least and maybe Medicaid trying to get some of that money. If the injured is not an heir, the spouse who is the heir may be penalized if Medicare procedures and reporting are imperfect at best and bad timing at worst. Pay off one hospitalization and hope to inherit, but then face the fact that Medicaid may penalize an heir. Or , penalize the injured by saying we won't admit you because your spouse has more money in the near future. Or does Medicaid take the injured and go after the remaining spouse's inherited rewources - we don't know.
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