What about a divorce?

*Apart from multiple sclerosis*, healthy as a horse… Well, I've heard of the power of positive thinking.

Um. I'm almost too flabbergasted to comment other than that. Why not visit an elder care lawyer or specialist financial advisor together and take advice?

What kind of assistance does he need? Why not liquidate the assets to pay for what he needs? A sham divorce may still not qualify him for aid.

I am not a lawyer but was told this was not an option for my folks. My Dad had to "spend down" so my Mom could get on Medicaid. He did take her name off the house etc. The "community spouse" is entitled to keep the house, a car and a limited bank account. Unfortunately, it is not a pretty picture.

I too recommend an Elder Care Lawyer..

GOR FOR IT!

You should talk to a lawyer. This sounds like fraud to me.

Not sure that getting a divorce would help but I don't think it's fraud - SAYING you were divorced might be! It would more be a loophole, if it works of course.

A divorce would have had to happen five years prior to any need for assistance (at least as far as I know). I'm not an expert in this field, and there may be circumstances where this could work, so yes, see an attorney. However, I doubt that this will work at this time. You'd still have the five year look-back.
Take care,
Carol

Why would you do something so dishonest? Assistance is for those that genuinely need it. See an elder care Atty about setting up a trust.

If you're getting a divorce for the purpose of hiding assets, it's fraud.

I'm in agreement with those who recommend seeing an Elder Law Attorney. However, I am a bit disappointed and I feel a bit uncertain about the help we got from a so-called Elder Law Attorney, I will not criticize you for considering a divorce. I have heard of others who have actually done that. Unfortunately, there are laws hat prevent us from even protecting assets to provide for ourselves. Having a husband with dementia,not knowing what his future will be, and desiring to protect resources for myself (I, too, am younger than my husband and very healthy), I have been doing/reading things to see how I can protect income/resources from Medicaid, if it becomes necessary. I no longer feel this is WRONG as some feel. Think about those millionaires in our society who pay very little or no taxes - do you think that is wrong. I say, get as much advice as you can and do what you must for your own survival. Blessings and hugs to you.

Hire a Lawyer to prevent scam or fraud. I would be careful. Donot hide assets.

Whether something is morally wrong or whether it's illegal are two different issues. Talk to a lawyer.

Why not hire reasponably priced care for him in your own home and live out the remaining time he has left in a loving supportive environment. That is what you earned and saved your money for a " Rainy Day". You are entitled to keep 50% of joint assets and 100% of your own 401K or other investments that are in your name only. Most state also allow you to keep the house if you live in it. See an estate planning attorney.

I presume the tactic to which Caril is referring is for her to file for divorce and have her husband "settle" the divorce by passing ALL of the marital assets to his wife. This will not work for at least 2 reasons: 1. No one in a divorce proceeding relinquishes his.her rights to ALL assets. It i a sham that makes a mockery of the divorce and Medicaid systems. I doubt a divorce judge would approve such a grossly unequal distributuion2. As the divorce is being sought for the sole purpose of qualifying the husband for public benefits, a 60 month look back would apply. Therefore you would be no further ahead. I strongly suggest you consult with an experienced elder law attorney in your state.

A friend of mine did it, but he was nearly bedfast and she couldn't manage his care. He went into a home, and she has remarried to a man in his 90's who takes care of her now.

The entire system needs an overhaul...insurance doesnt compensate the spouse for additional care the disabled person requires...even with a visiting nurse many times that service only offers a respite for the non disabled spouse. As for income--some agencies consider your ANNUAL income some agencies consider your MONTHLY income. Annual and Monthly seem the same right? Nope it isnt---some income is issued/paid/drawn on a monthy basis but isnt taxable at years end-(Annuities-SS Disability-Non Taxable Retirement disbursements ect..). So, you can be over the monthly income guidelines but grossly under by tax time. Why am I pointing this issue-out in reference to a "Convenient Divorce"? Because although it isnt morally correct--for many, it is their only recourse. I also feel joint assets are 50% to the union-so only 50% should be considered for the care for the disabled spouse.
One other issue---A spouse cant claim their disable spouse as a dependent-but a divorced spouse can-with all of the deductions associated with taking care of them. So my opinion is make sure that your state doesnt hold you to some sort of "number of years divorced" standard and do your homework as far as tax laws goes. I live in Illinois and I do know several couples that have been forced to have a "Convenient Divorce" due to one spouses disability.

Also, please remember that if they get a divorce, your mom would no longer have the right to make decisions for his care, would not be allowed to visit if he ended up in a hospital in intensive care; she would have no legal right to knowledge of his condition, etc etc etc.

Is there any likelihood the soon-to-be impoverished spouse's earnings or IRA's can be protected? You may have already retitled community or joint property but if not I would explore that possibility. Above all, protect yourself from accusations of fraud.

If you do get a divorce for any reason...the disabled person could always sign a Power of Attorney for Healthcare, Estate and Financial. If the disable person lacks the mental capacity to issue a POA then the divorced spouse can apply for a Plenary Guardianship of the disabled.

I have had clients get a divorce for this exact reason. It is important that the divorce lawyer work with a Medicaid-planning expert elder law attorney, though, so that the divorce accomplishes its goal. Note that you cannot simply transfer most of the assets to the healthier/younger spouse; under the federal Medicaid statutes, there must be an "equitable distribution" of the marital assets. For example, if under an "equitable distribution" each spouse would keep $100,000, but you get a judge to grant a divorce allowing the healthier spouse to keep $150,000, then for Medicaid purposes this would be treated as a GIFT from the nursing home-bound spouse to the healthier spouse. Such gift would be a penalty-causing transfer subject to the five-year lookback rule.

On the other hand, which assets each spouse brought into the marriage or inherited or received as gifts from their relatives, all play a part in which assets each spouse can receive under the divorce laws. As you can see, it gets complicated, which is why you need two attorneys working together to accomplish this.

I address the issue of a Medicaid-planning divorce in my book. Good luck!

It is done all the time....

Move out of the USA

This is most definitely dishonest and fraudulent to me but I am sure you can find ways to achieve this idea.

I didn't know that you didn't have a choice of who you make power of atty. Along with choosing a health segregate. If they divorce dose the law keep her from becoming both of these. And if He had a will wouldn't that covering everything. from A-Z just something to ask your atty.

I would consider the idea of moving out of the United States, if you are both comfortable with living in another culture. The United States is the wrong country for families facing these financial issues. There are about 82,000 American citizens currently on assisted living or nursing care in Mexico, and there may be other countries which provide similar, affordable options.

There is so much misinformation here, I wouldn't touch any of it except that of GabrielHeiser.

It IS fraud, unless you live in separate residences. I know for a fact. My cousin's wife accomplished it for a few years, then was turned in for living with him and her check was frozen immediately.

Countrymouse, I am thinking MAYBE these two loving people are thinking into the future. The gentleman wants his wife to be taken care of in HER old age. They are thinking ahead...which I wish to hell my husband had done when he was first diagnosed with Alzheimers. Six years after diagnosis now, and things might be different.
I went to elder care attorney....he told me there was something called Spousal Abandonement. Just leave the spouse at the hospital, say you couldn't take care of them anymore, and go. He told me the spouse would keep any moneys he had coming in (soc sec, or retirement) and that would be it.He said I would NOT have any say in my husbands care but that I could visit him, 'the home' or whatever could not keep me away. I thought this sounded rather strange. Of course I did not do this, and have not stayed with this attorney (I have NO attorney right now).

The health care system is pretty expensive. I think the people who are upset that someone might be "hiding assets" are not thinking about people who are currently comfortable financially, but would be totally wiped out by long term care. Rather than having the surviving spouse end up in poverty and then on medicaid, planning ahead is very important. Especially if one is much younger than the other. It is so complicated, that it is important to see an attorney who specializes in this field to talk about trusts, divorce, getting long term care insurance etc.

I also worked with people at the bottom rungs of income, who could not marry or the combined assets would disqualify them from medicaid (by very little income) even though their medical expenses were huge.

Keep in mind that hospitals are not above going after your home and other assets to cover bills. Again, potentially wiping out the surviving spouse.