Will Medicaid take my home or will Medicaid take my house are two of the most common questions I get when someone is entering the nursing home and trying to qualify for Medicaid. This is understandable since people’s homes are obviously very important to them. Many times, the home is a persons most valuable asset. They do not want to lose their home if they apply for Medicaid and have to go into a nursing home to pay for their long term care costs.
Medicaid Does Not Actually Take Anything
It is important to understand that Medicaid does not actually take anything from a person who applies for Medicaid. Medicaid will just not pay unless you have spent all of your assets down to a certain amount. Medicaid has asset limits and will not pay if you have more than the limit. A single individual cannot have more than $2,000 in assets; a married person who is not going into the nursing home can keep one half of the total assets up to $128,420. Because of the assets limits, it is not uncommon for people to wonder will medicaid take my home.
Will Medicaid Take Your Home – No, but They Will Put a Lien on It
If you are married and your spouse continues to reside in the home, the home is exempt and you could qualify for Medicaid with no risk to your home. If you are single, on the other hand, you can still qualify for Medicaid, even you have a house, but Medicaid is going to put a lien on the home for any amount of money that they pay on your behalf. Then, when you pass away, Medicaid is entitled to be reimbursed for any amount of money they have paid for your care. The problem is that often the Medicaid lien will exceed the value of your home when you pass away. If so, then your family would not get any money from your home. There are ways to protect your home, but it takes advanced planning. If you have asked yourself “Will Medicaid Take my Home” you are not alone. This is a common concern for someone entering the nursing home.
We have helped many families protect their homes and other assets. Let us help you – call us today at 256 251-2137.
Giving away assets to qualify for Medicaid is a strategy that many people use when they are concerned that they might be going into a nursing home because they think it will help them qualify for Medicaid more quickly. Unfortunately, giving away assets usually involves way more risks and harm than good.
Medicaid has a 60 Month Look Back
Medicaid has a 60 month look back from the time you file your Medicaid application. Therefore, if you’ve given away any assets within the 60 months prior to filing your application, Medicaid is going to penalize you for those giveaways and you won’t qualify. The penalty is based on how much money you gave away during the 60 months prior to the application. The penalty is calculated by taking the amount given away and dividing that by a monthly divisor which is set by Medicaid each year. For example, if you have given away $64,000 within the past 60 months and the Medicaid penalty divisor is $6,400, Medicaid will impose a 60 month penalty.
There are More Risks Than Rewards When You Give Assets Away
The other problem with giving away assets is that once you give them away you no longer have control over them. Whoever you give the assets to has potential creditors and predators and your assets are now subject to those creditors. Most people say well, my son or my daughter would never do anything with my assets. However, what if they get sued? What if they get a divorce? What if they have to file bankruptcy?
Once you give your assets away to that person, then your assets are now subject to their bankruptcy filings, divorces, lawsuits, etc. I’ve seen more people than I can count unfortunately who used this strategy and had to go into a nursing home and the assets were no longer there and they couldn’t get the care that they needed. While there are strategies to protect assets from long term care costs, giving them away to relatives is not something that I recommend. There are better ways to accomplish the same objective without the risks.
Long-term care, should you require it as you age, is a significant expense. Depending on where you live, the cost of a skilled nursing home can be well over $100,000 a year or more, and this is for a semi-private room. Medicare only pays under certain circumstances and in limited amounts, which surprises most Older Americans and their loved ones to learn. Further, if you have savings and investments, you might not qualify for the public benefits programs that can help you pay for the care you need such as the Alabama Medicaid program.
If you have not thought too much about long-term care, you are certainly not alone. Even if you are well-off enough to think you do not really need to put money aside for such costs, you do not know what is going to happen in the future, and most families cannot accurately predict how much it is going to cost.
A study published by theDepartment of Health and Human Services shares that 48 percent of all Americans over the age of 65 will need long-term care outside the home for up to one year. Nineteen percent will need it for up to 24 months, and more than 21 percent between two and five years.
For most of us, we want to create an estate plan that is focused on two main aspects:
Lifetime protection, which safeguards you and your assets should you be in a crisis and need a decision maker with legal authority to act.
Creating a legacy that will live on with your family members after you pass.
There are many ways you can start to address long-term care needs in your estate plan when you work with an elder law attorney. Your elder law attorney can provide a comprehensive strategy that addresses all of your health and legal needs, assuring you of the best possible care and protection should you need it. Long-term care planning can be incorporated into your overall estate plan so that it includes lifetime protections that contemplate a potential need for custodial care when you discuss your concerns with your attorney.
When we are healthy and in our prime, we do not often think about the big “what ifs.” Long-term care, as well as the threat of critical illness, is generally the last thing on our minds, even if we already have an estate plan in place. Most people think of estate planning as something that settles your affairs after you are gone, but know that it can also help you live better in life. Estate plans that consider long-term care will protect your assets and can ensure your legacy is intact should you need to be in a nursing home for any length of time.
We know this blog may raise more questions than it answers. Do not wait to contact our law practice to schedule a meeting to discuss your concerns today, or any time in the future.
Do I Have to Wait 60 Months to Qualify for Medicaid?
One of the most frequent questions that I get as an elder law attorney when someone’s trying to apply for Medicaid to get in a nursing home, is, “Do I have to wait 60 months to Qualify for Medicaid?” And the answer is, “No.”
The Medicaid Look Back Period is Different from the Medicaid Penalty Period
60 months is simply the look-back period, or the amount of time that Medicaid looks back to see if you’ve given any assets away or if you have sold assets for less than fair market value. So, when you file the application, you have to meet the financial requirements which I’ll address in another video. But once you meet those financial requirements then Medicaid is also going to look back 60 months to see if you’ve given away any assets during that time.
If you have given away assets during the past 60 months, then they’re going to penalize you based on the amount of money that was given away. The penalty period is determined by the amount of money you gave away divided by a divisor that is put out by Medicaid. The Medicaid look back period of 60 months is the same for everyone. The penalty period is different for everyone. However, there is no Medicaid 60 month rule that says you have to wait 60 months to apply for Medicaid. Most of our clients don not wait 60 months. We even have clients who are already in a nursing home and we can help them protect some of their assets.
if you have any other questions, watch the other videos or give us a call 256 472-2172. I look forward to meeting you.
One of the most frequently asked questions I get as an Elder Law attorney is “Will the Government Pay for My Nursing Home Expenses?” There are government programs that will pay or help pay for long term nursing home care but Medicare is not one of them. Medicaid does pay for nursing home care but there are very strict income and asset limits to qualify. The biggest and most costly mistake that people make is not getting information about how they can qualify for Medicaid. Watch this video to learn more. If you have a loved one in a nursing home or going to a nursing home, let us help you. Give us a call at 256 251-2137.
