We’ve talked before about a few of the most common Medicaid and nursing home myths, and today, we’re back for more! Keep reading and make sure you know what is fact and what is fiction.
Myth: If I give ANYTHING away, I am ineligible for Medicaid.
Although this is not true, this particular area of Medicaid is very complicated. The best thing to do is to consult with an experienced elder law attorney before transferring any assets. (AFT cannot give legal advice.)
Transfers between spouses are exempt, but if you transfer assets to someone other than your spouse, you will likely be subject to penalties that may make you ineligible for Medicaid for a period of time. The general rule of thumb is that the more assets you give away, the longer your period of ineligibility (though there are some exceptions to that rule).
Myth: I will be eligible for Medicaid if I put all my money in my spouse’s name.
When determining financial eligibility for Medicaid, the assets of both the applicant and the spouse are considered. Additionally, the assets of both spouses are used to compute the Community Spouse Resource Allowance. This is the total amount that the spouse who remains at home is allowed to keep while the spouse who is in the nursing home is on Medicaid.
In 2015, this amount was a maximum of $119,220.
Myth: If my assets are kept in a living trust, they are protected from nursing homes.
Funds kept in a living trust are vulnerable to nursing home costs. They are also considered when determining financial eligibility for Medicaid.
However, funds kept in a special needs trust for the elderly are not counted when determining Medicaid financial eligibility, and they do not have to be spent down on nursing home costs before Medicaid will begin paying for nursing home care.
Contact Alabama Family Trust Today to Set Up a Special Needs Trust!
If you want to protect your elderly loved one’s assets, don’t hesitate — set up a special needs trust for the elderly! We can keep your aging parent’s assets safe so that they are eligible for Medicaid and won’t lose their savings to nursing home costs. Don’t wait until it’s too late. Contact us today!