Does Medicare pay for my nursing home costs?
Medicare does not the pay the expenses of long-term care. Medicare pays for skilled nursing care up to 100 days. Medicaid, which is a federal and state medical program for persons who meet certain asset and income levels, is the government program which pays for long term nursing home care.
Is Medicaid the same in all states?
There are some similarities and some differences. It is important to work with an attorney who is knowledgeable with the Medicaid rules in the state in which the intended Mediciad recipient will be entering the nursing home.
If I own a home and have been receiving Medicaid benefits can the state take my home at my death?
In many states, at your death the state can place a claim against your estate for reimbursement of Medicaid benefits paid on your behalf during your lifetime. Nevertheless, in most states a Medicaid estate claim can be prevented with proper planning.
If my home is titled in the name of my revocable living trust can the state place a Medicaid lien be on my home at my death?
Yes. A revocable living trust does not protect you from your creditors. Medicaid is a creditor and will place a claim against your home at your death in most states. However, this claim can be prevented with proper planning.
If all of my assets are placed in a revocable living trust do I qualify for Medicaid benefits?
No. Even if assets are titled in the name of your revocable living trust the assets are still owned by you and therefore counted in determining Medicaid eligibility.
Can I make gifts of $12,000 per person, per year and still qualify for Medicaid?
Under the federal estate tax if you gift away $12,000 per person, per year these gifts are not subject to gift tax. However, the $12,000 gift is a transfer for Medicaid purposes and imposes a “disqualification period” for Medicaid eligibility.
If my spouse is going into a nursing home, can he or she transfer all of his or her assets to me and qualify for Medicaid?
To determine the eligibility of the spouse who is going into the nursing home to receive Medicaid, all of the non-exempt assets held by the husband or wife are added together and then divided equally between the spouses. Until the half attributed to the spouse going into the nursing home is reduced below $2,000 that spouse is disqualified from receiving Medicaid. The spouse outside of the nursing home can retain half of otherwise non-excludible assets, up to a maximum of approximately $100,000.
Can I transfer my assets to my children just before I go into a nursing home and still qualify for Medicaid?
Under the 60-month Lookback Rule, eligibility for Medicaid may be denied if the person going into the nursing home transferred assets for less than fair market value within 60 months before his application for Medicaid benefits.
Is it wrong to “hide assets” in order to qualify for Medicaid?
Hiding assets to qualify for Medicaid is a crime. However, it is not illegal to structure one's assets in an effort to qualify for Medicaid nursing home benefits. Elder law attorneys advise their clients on the Medicaid law and what can and cannot be done legally within the law.