Tag Archives: MEDICAID

If I receive portion of husbands 401k, will I lose disability?

Q: I have been married since 1993. I have been on disability since 2003. Our divorce was filed in 2003 but has not been finalized. Can I get a portion of his 401k and keep my disability payments. (Swisshelm Park, PA)

A: It depends what type of disability you are on. Some benefits such as Supplemental Security Income (SSI) and Medicaid are “needs based” which means that the there are specific income and asset limits a person must meet to be eligible. Social Security Disability Insurance (SSDI) and Medicare are based on age and/or disability status, are not needs based, and do not have the same income assets limitation in order for one to be eligible. You need to determine which one you are on and would benefit from a consultation with an elder law attorney. If you are certain you are on SSDI, you should be fine. If you are on SSI, an elder law attorney may be able to limit the impact your receiving the 401k will have by advising you how to shelter some of the 401k money and keep the benefits. It would be worth the consultation.

Senior HUD living person comes into large sum of money

Q: If a senior lives in a HUD senior apartment and comes into a large sum of money, what happens to their status of living there? Also, what about Medicare and Medicaid benefits? How will they react?

A:  Regarding Medicare, it is not based on assets so it is not affected. Medicaid is based on “countable assets” so it would potentially be affected by someone “coming into” money. You have to look at the Medicaid application that was initially completed. Usually they are somewhat similar to any needs-based model where they look at income and assets. They are subject to periodic review. It is not clear if the tenant would have to leave or merely pay more money to spend down, so to speak the new found money. You have to look at the documents and speak to the facility. My advice would be to seek an opinion from an elder law attorney as early as possible to see if any of this money can be sheltered.

Do I have to pay mom’s money back to a nursing home?

Q:  My mom paid off my car and then went into the nursing home. The deal was, a few years later would I have to pay that amount to the nursing home. My mom is getting very forgetful if she gave me money to pay off some bills I have. If I have to have in home help or have her go to a nursing home. Would that penalize her, or would I have to come up with that money? I am on her checking account and I have durable power of attorney. Thank you.

A: I am a little confused and don’t have all the facts that I need. You really need to ask an elder law attorney who can look at the entire situation. Generally, transfers of a person’s money to others, without consideration (no payment in exchange) within 5 years of Medicaid eligibility, can cause that person to be ineligible for Medicaid in the amount of the transfers. It is not the nursing home that is the problem, it is if and when your mother needs to apply for Medicaid. It sounds like you and your mother could really benefit from legal advice, but the attorney has to know the entire situation.

Should I report injury settlement to Medicaid?

Q: Should I refrain from filling out my Medicaid recertification form? First let me say that Medicaid does not have any liens on my settlement in any way. I am due to have the recertification form filled out and returned in less than two weeks. However I recently received a personal injury settlement for less than $20,000 but more than $10,000 which I am not sure by may put me over the PA asset or resource threshold. One legal advisor informed me that I could let it lapse and try to find a Medicare Advantage program to replace Medicaid. I never have liked to inform anyone of what’s in my bank account; but then, who does? So should I not fill out the form which means automatic cancellation or fill it out and let them deny my Medicaid because of my suddenly inflated financial resources from the P.I. settlement?

A: There is not enough information to give you a reliable and through answer. Why would anybody want to risk losing Medicaid funding is my first question. If you handle this improperly you could risk violating the law and lose Medicaid benefits.  I would consult with a lawyer versed in Medicaid rules and regulations before doing anything.

For purposes of Medicaid, what assets are exempt?

Q: I am widowed and getting up there in age. I want to make sure I can protect myself. I own a home, a car, some certificate of deposits and a bank account.

A: This is a very complicated issue and you should sit down with an elder law attorney to review your entire situation-assets, income, insurance, health, everything. Very generally what is exempt are one automobile of any value, prepaid burial expenses, special needs trusts and $2,000 in liquid assets. Some assets are conditionally exempt, for example, the principal residence, while residing in it and some income producing property.

 

I need Elder Law advice on moving mom’s assets.

Q: I am moving all my mom’s assets into Irrevocable Trust for Medicaid nursing home care purposes. I’m aware of 5 yr look back period. The PA Department of Public Welfare Medicaid worker informed me my mom’s $1300/month is too much to qualify for in home help but, nursing home help would be possible. Mom is healthy now but, SHE wants to plan for the future and so do us kids. So protect as much of her assets as much as possible should we place all of the following (IRA, paid for House, Life Insurance Policy, a small Savings Account) into an Irrevocable Trust? We could set the trust up to distribute $700/month automatically to my mom every month making her monthly income $2000 and then, when/if need arises, apply for Medicaid to help cover the rest of the nursing home expenses. Is this a workable plan? Thanks!

A: An irrevocable trust is one tool, among many that people use. If you are planning to move retirement plans into it, they need to be cashed out which often triggers income tax consequences which could make this move not advisable. To advise you thoroughly on this would require an in depth analysis of your mother’s entire situation including her complete assets, health, age, social security income, etc. I suggest that you meet with and Elder Law attorney to work on a blueprint as opposed to just doing this yourself.

I need Elder Law advice on moving mom’s assets.

Q: I am moving all my mom’s assets into Irrevocable Trust for Medicaid nursing home care purposes. I’m aware of 5 yr look back period. NC Medicaid worker informed me my mom’s $1300/month is too much to qualify for in home help but, nursing home help would be possible. Mom is healthy now but, SHE wants to plan for the future and so do us kids. So protect as much of her assets as much as possible should we place all of the following (IRA, paid for House, Life Insurance Policy, a small Savings Account) into a Irrevocable Trust? We could set the trust up to distribute $700/month automatically to my mom every month making her monthly income $2000 and then, when/if need arises, apply for Medicaid to help cover the rest of the nursing home expenses.  Is this a workable plan? Thanks!

A: An irrevocable trust is one tool, among many that people use. If you are planning to move retirement plans into it, they need to be cashed out which often triggers income tax consequences which could make this move not advisable. To advise you thoroughly on this would require an in depth analysis of your mother’s entire situation including her complete assets, health, age, social security income, etc. I suggest that you meet with and Elder Law attorney to work on a blueprint as opposed to just doing this yourself.

Will transfer on death deed avoid Medicaid”?

Q: Will a Transfer on Death Deed protect my mother’s home from Medicaid reimbursement if it was filed over 5 years prior.

A: I am not familiar with what a “transfer on death deed” is. If it transfers title from A to B upon the death of A, then my opinion it would not preclude a Medicaid interest as it only transfers a future interest in the property which is completely revocable during life. Because of this the state will file a lien against the property. You should review the deed with an estate planning attorney versed in Medicaid law.

Should I liquidate her assets?

Q: I have a 96 year old Grandmother. I am last living relative. Recently removed from her home where she was living alone in bad conditions, 600 miles away from me. I now have established temp guardian and custodianship, permanent in 3 weeks, and getting her in nursing home. Her house is in a bad neighborhood and now that people know it is vacant, it will be robbed and badly vandalized by the time the court date arrives. House is in bad condition inside and city is about to condemn but I had 2 people come out and prepare cash offers. The house is full of my grandfather’s expensive tools, etc. I hate to see that all go to thieves or be taken by the city. Should I try to sell everything and give her the money? I don’t live here and paying $100 hotel every night, don’t have much time

A:  I have had many clients facing this situation. If you feel you will need to apply for Medicaid funding for her in the near future you want to be careful with how you liquidated her assets. While it is true that the transfer of assets without fair consideration in the five years prior to Medicaid eligibility can lead to a penalty, the operative wording is “fair” consideration (fair price). My suggestion is to follow the advice of an attorney versed on PA’s administration of the Medicaid program. Generally, you can liquidate personal and real property as long as you do it for a fair price and keep accurate records-and keep her money for her, and not gift it to others. If you sell the house, get a few offers in writing, take photos and place the proceeds in grandmother’s account, for her use. Document the deposit. If you can get someone to appraise it before selling, do it. If you apply for Medicaid some day you may need to demonstrate to them that the sales price was fair. You can deduct the expenses from her account, but keep records and receipts. No one expects you to pay for all of this out of your own pocket. Reimburse yourself from grandmother’s account, but again, document everything including your hotel room, gasoline, movers, locksmiths, etc. As far as right now, you should remove the valuables from the house and secure the house by whatever means necessary-light timer, an alarm system, or even boarding it if you have to. In the meantime, gather the bids, and sell it. As long as you can feel confident you sold it for as much as you could get, given the bad area and condition of the house, Medicaid will probably understand, as long as you can document it. Again, find a local lawyer to advise on this before you start for some guidance. An attorney can advise you on any available financial tools to shelter some of her assets from Medicaid consideration.

 

Can I keep my parent’s house when they die?

Q: How do I keep my parent’s house if they die? My mother died over three years ago, and tonight I received word from the hospital that my father is not doing well. I know that the house currently has a mortgage on it, and that there is a little over nineteen thousand dollars left on the house. Unfortunately my father doesn’t have life insurance on himself, and the bank removed the GAP insurance he had through them. They did it after he said something about his health issues. I know that my parents would want me to keep the house, and I would like to know what I should do in order to keep it. Should I continue to make payments on the mortgage? If I do does it mean that I’m agreeing to paying all of their bills? I’m also asking because right now the house is my place of residence. I moved in to help with my father, and go to college, and now… To be perfectly honest I’m scared. Some help and information would be wonderful. Thank you.

A: You really need to talk to a lawyer. Ask around, some lawyer will talk to you for no fee or a modest consultation fee if you don’t have money. There are some issues here. If either of your parents received Medicaid, the house could be subject to a claim. However, there is an exception to their claim called “undue hardship” if you were living in the home as their caretaker for 2 years prior to their hospitalization. Don’t make statements to the hospital about your living arrangement until you talk to the attorney. Also, when your last parent dies, you personally do not inherit their debt. Their estate is responsible for their debt. You can keep paying the mortgage but do not sign any document from the bank in which you assume the mortgage. If you are the only heir of the parent, you can probably keep this house by if you can afford it. It will likely require opening an estate and paying inheritance tax. Again, explain all of the details to a probate or elder law attorney.