Medicaid asset protection trust? - AgingCare.com

Medicaid asset protection trust?

Follow
Share

Has anyone used "Gift and Loan" strategy relative to some of the asset protection before a full spend down? How effective is this method and are there any pit falls one should consider?

This question has been closed for answers. Ask a New Question.
23

Answers

Show:
1 2 3
As our eldercare lawyer said," you saved all your life to enjoy retirement and now you are screwed." Can't get LTC insurance once someone is diagnosed with dementia. Your savings and investments will go for care and you'll have to sell your house to have money to live on. I'll e left with only $150,000 to live the rest of my life on. Worked 50-70 hr weeks so I'd have some money to travel on. My husband chose to not save and now my savings has to be used to pay for his care. Maybe I should have taken the lawyers advise, and got a divorce when we first talked to him.
Helpful Answer (0)
Report

JDP1000, my Medicaid experience was quite different than yours, particularly in the spenddown requirements, which did in fact put me in a very precarious financial situation as I deal with retirement. I am SO glad the rules have changed! (My application for my husband was about a dozen years ago.)

This again points out the critical importance of consulting an Elder Law specialist and not listening to tales of what other people heard or even what they experienced years ago.
Helpful Answer (0)
Report

Babalou it is similar here in North Carolina. I was told my wife would be able to have a maximum of $3,000.00 of cash and would surrender her Social Security check each month to help pay for her care. In my name, I would be allowed to have $120,000.00 in cash and investments, our home, a newer car and a second car but it had to be older. All would be left alone until after we both have passed and then the state has the option to come after to estate for what they paid out on her as well as anything they may have paid out on me. My daughter asked about a "medicaid divorce" (I did not like that idea) however it was his opinion that the state could most likely challenge that and nullify it unless it was done before the end of the look back period. Their were some scenarios he indicated I could look into but most would limit my access to any money shelter and even then may be subject to the state seeking recovery of expenses. At this time I am paying 100% out of pocket.

It is my understanding that the North Carolina Department of Health pays out +/- 75% of it's budget for medicaid costs alone so I would guess the rules here are subject to change again at any moment.

As you said, I would not take advice from anyone except a good eldercare attorney.
Helpful Answer (2)
Report

My understanding re: how Medicaid works when there is a "community spouse" is that the spouse who is NOT going into a NH is allowed to shelter about $100,000 in assets. The house, if the spouse is living in it, is a protected asset until the community spouse vacates, dies, etc.

I would not take financial advise from someone whose job it is to get the facility paid any way it can. I would suggest that anyone who is facing loss of assets due to a spouse needing nursing home care engage an eldercare attorney whose job it is to work for YOU and protect your assets.
Helpful Answer (4)
Report

Not having the details of the OP's situation, there sure is a lot of judging and criticizing and making negative assumptions. It seems people are ready and waiting to pounce, looking for someone to dump their misplaced anger on.
Helpful Answer (2)
Report

Good question Anne, I was wondering the same thing. Maybe the OP will give a little more explanation.
Helpful Answer (0)
Report

The interesting thing about this question...even though there have been many answers...is I am not really certain what the OP wanted to do. Rely on medicaid in her home? Use Medicaid for a NH? Spend down? Question brought many comments but still........wonder what they really want to do.....
Helpful Answer (2)
Report

Bobbi, I know people whose spouses re in NH and it hasn't left the other spouse poor. The law doesn't allow it anymore. Medicaid will pay for the ill spouse. Not sure how they work with SS and pension.
Helpful Answer (0)
Report

Caril i am sorry you had to make that had and painful decision. The system is broken in many ways, like my nephew who is severly striken with arthritis and has been fighting for disability for 2 years. He has a wife and two young children. Worker had the response that he could divorce his wife of 14 years and then her and the kids could get more help.....amazing a country that touts family values and yet favors those who are unwed or divorced, just not right. However unlike your situation many people like the OP try and game the system most time so there is money they can inherit as if that is their right. That is what makes people so angry, why should we the taxpayers foot the bill so someone can get a nice fat check when mamma dies. When I first read the post it made me angry, like someone asking for help to "get away with something". A lawyer once told my sister and I some people buy a nice shinny mercadies for daddy, since hes allowed to own a car. The spend 100,000 on a car he will never drive but they will inherit when he dies. The lawyer said medicaid is now looking into things like this too to make sure they arent pulling a fast one. I am sorry about you and your husband and i understand why u did what you had to do, others though I do not understand.
Helpful Answer (1)
Report

When it comes to Medicaid and asset protection all of the comments thus far are the most common flow of conversation. This dilemma can be seen from both sides.
Myself, with a husband of 58 years with Alzheimer's,I decided to divorce him to protect our home which is mainly all we have. It was suggested by an Assisted Living planning coordinator that I sell the home and pay for two years of his care (at $3,800 per month) then they would help get him on Medicaid.
Problem with that is our home is worth about $200,000 which would leave me with about $80,000 to get me a place to live. Our only income is social security.

It would only help out the taxpayers for two years or I would end up on Mediciad myself after finding a condo or something to live in.

I think there's a difference when a person has a lot of assets who try to outsmart Medicaid and people like myself who are barely getting by anyway.

So I got the divorce, gave everything to myself and my hubby agreed as much as he could. The divorce is final, my house is safe, car, furniture. My hubby had a CD worth $10,000 and that will be his spend down.

This can backfire if anything happens to me of course. That's the other chance that is taken with the divorce choice.

Good luck to you, it's all hard decisions!
Helpful Answer (0)
Report

1 2 3
This question has been closed for answers. Ask a New Question.
Related
Questions