Medicaid
A common misconception is that spouses have full access to each other’s finances, but this is not the case. Retirement accounts, pensions, and other assets in one’s individual name cannot be accessed by a spouse unless that spouse has been authorized to do so under a valid Power of Attorney. Medicaid recipients with retirement accounts […]
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Gifting and Medicaid planning is commonly misunderstood. We often see clients who believe that the gifting rules for Medicaid are the same as the IRS gifting regulations. The IRS allows a person to give up to $15,000.00 per person annually without penalty. Under the Code, all gifts made in any given year are subject to […]
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A revocable trust is not used in Medicaid planning. According to the Medicaid program, assets in a revocable trust are still considered available resources for eligibility purposes. This is because the grantor of a revocable trust has full control of and access to the money and property in the trust, and thus can utilize those […]
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If the spouse living in the community executes a Spousal refusal form, the community spouse’s assets are not used in calculating the asset eligibility of the medicaid applicant. If one spouse requires nursing home care, the community spouse does not need to spend down all his or her assets and become impoverished paying for care. […]
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The Community Based Medicaid program assists applicants in paying for the cost of nursing home level care while remaining in their home. The Medicaid home care program can also pay for certain adult day care programs and needed medical supplies. Since Medicaid is a mean-based joint state and federal program, certain eligibility requirements must be […]
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More than five million seniors in the United States have been diagnosed with Alzheimer’s disease. Caretaker spouses agonize over what will happen if they were to pass away leaving their husband or wife without someone to care for them. The reality is that in many cases, seniors with Alzheimer’s need a high level of care […]
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The rules for applying to Community Medicaid in New York State to cover the cost of long-term care are undergoing an overhaul. Laws signed in April 2020 amend the application process for these services as well as other parts of the Medicaid program. 30 MONTH LOOK BACK The biggest headline is that there will […]
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The Fiscal Year 2020-2021 Budget for New York State was signed in April 2020. Among other changes, the budget put into effect changes to the Social Services law which will impact eligibility for, and administration of, the Community Medicaid program. Among these changes is a new 30 month (2 ½ year) “lookback” for transfer of […]
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Irrevocable “Income Only” Trusts, commonly called Medicaid Asset Protection Trusts, are used to protect assets and allow people to qualify for Medicaid long-term care if needed. Often spouses will place each of their half interest in their home in the trusts, maybe some liquid assets, name a child as trustee and not think about it […]
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The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed a couple of months ago is mostly known for the economic relief provided to individuals and businesses. However, the new law also suspends the requirement to take required minimum distributions (RMDs) for this year, even for inherited IRAs. If you already took the 2020 RMD, […]
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