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While this varies by state, the spouse not requiring Medicaid (Medicare doesn't have a spend-down requirement) can usually keep a certain amount of jointly-held assets (it's about $130K this year in my state and increases annualy for inflation). S/he can also purchase Medicaid-compliant annuities with assets in her/his own name as long as this occurs before the other spouse requires Medicaid to pay a portion of her/his care. There are legal provisions to protect the spouse not requiring Medicaid from impoverishment. Divorce is not necessary to accomplish this. An elderlaw/estate planning attorney is the person who can acquaint you with your state laws.
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Reply to swmckeown76
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I agree that a consultation with an appropriate attorney is the thing to do.

You can prepare for this by putting together a list of your assets and income, including information on whose name they’re in. It also wouldn’t hurt to look up information on your state’s Medicaid “community spouse” asset
and income allowances.

In addition to advising you on Medicaid, the attorney can explain any likely effects on existing medical and financial POAs and whether your spouse is likely to qualify to replace them with new ones.
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Reply to Frebrowser
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Discuss options with an elder law attorney.
I have myself seen this done.
Had a friend whose wife was in a vegetative coma for many years before her death--a near downing incident while on vacation. They had two small children he had to raise and every penny was going to her care. He did a divorce that was quiet and remained faithful and attentive until her death with no one but his closest friends being aware.

There ARE options. They should all be discussed with an EXPERT, not a forum of strangers who may or may not have good advice to give. You cannot afford to go wrong on these life choices.
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Reply to AlvaDeer
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Its Medicaid. You really should talk to an Elder Lawyer. Medicaid is different in every state. It gets a little sticky when one spouse needs care and the other doesn't. Its always wise to get assets split before a spouse is put in care.
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Reply to JoAnn29
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