There are a lot of myths out there about Medicaid, nursing homes, and how one affects the other. So how can you separate fact from fiction? By consulting the experts at Alabama Family Trust, of course! When it comes to Medicaid, nursing homes, and protecting your loved one’s assets, we’re the ones to ask.
Read on to see how we’ve busted three of the most common myths regarding Medicaid and nursing homes.
Myth: If I have ANY resources, I am ineligible for Medicaid.
Nope! You can have some resources and still be eligible for Medicaid. Whether you are a single individual or a married couple, you can have exempt resources such as one vehicle, household furnishings, personal property, burial spaces, life estates in real property (in some states), and pre-paid funerals.
For those who are married, the family residence is considered exempt as long as the spouse still lives there. For single individuals, their residence may be exempt for a set period of time.
Myth: I have to spend-down all of my assets before I qualify for Medicaid.
In many states — Alabama being one of them — this isn’t true. However, if your (or your loved one’s) assets are not held in a pooled special needs trust like AFT, then you will end up having to pay all the nursing home bills out of pocket until your resources essentially run dry. At that point, Medicaid will start paying for your long term care.
Here at Alabama Family Trust, we can protect your loved one’s assets by keeping them in a special needs trust for the elderly. This way, they do not affect Medicaid eligibility, nor will they be funneled straight into nursing home care. They can be used to cover things that are not paid for by Medicaid.
Myth: I have to sell my house before I apply for Medicaid.
As mentioned above, one house is allowed as long as the spouse of the Medicaid applicant still lives there. Those who are unmarried can still qualify for Medicaid if they sign an “intent to return home” form, or if their house is listed for sale. However, Medicaid will put a lien on the house for the value of their provided services during the nursing home stay.
While it is often unnecessary to sell the house to obtain Medicaid benefits, it can be wise because there will not be any money to pay for insurance, maintenance on the home, or property taxes (if required). Selling the home or any other real estate should be discussed with an elder law attorney so no mistakes are made.
Alabama Family Trust Can Bust ALL the Myths!
Feeling uncertain about Medicaid and nursing home care? No problem! At Alabama Family Trust, we handle these situations every day. We know all the ins and outs of Medicaid and long term care, and we can make sure that you and your loved ones have a proper plan in place so that when it’s time to enter a skilled nursing facility, you won’t be left with the bills. Contact us today!