Can My Spouse Transfer All of Her Assets to Me to Qualify for Medicaid?
Whether or not a person can transfer all of his or her assets to a spouse in order to qualify for Medicaid is not a simple answer. It requires the watchful eye of an elder law attorney, especially in cases where it is a second marriage and there are adult children. In those cases, transferring all assets of the nursing home spouse to the spouse living at home could be a major warning action that can incite the children of the spouse who is in the nursing home.
In a situation of long married spouses, there are no transfer penalty rules to transfer assets between spouses. So, it is possible to transfer between spouses without breaking any of the transfer rules. The problem would occur if all of the assets transferred to the community spouse or the spouse living at home exceed the $120,000 threshold under the numbers in the current law. If it does exceed $120,000, then you need to look at the asset sheltering and asset protection options that are available to single people.
Spousal refusal may also be an option to protect assets, but this option has drawbacks. If you are moving assets between spouses that exceed $120,000, then it’s best to work with an elder law attorney to make sure that family harmony is preserved, the care of the person in the nursing home is met, the spouse who is living at home has their needs met, and that we are not going to create eligibility problems. When there are eligibility problems, then the family foots the 00 or 00 per-month nursing home bills. (dth.com)
If I Am Already In The Nursing Home, Is It Too Late To Start Medicaid Planning?
If there is absolutely no money left, then it is too late to start Medicaid planning. If you’ve been in a nursing home and you’ve been paying all of your assets, but you run out of money this month, then it will be too late to shelter assets because there will be nothing to shelter. A nursing home can typically do the Medicaid application in that scenario. However, for most cases, if you are in a nursing home or a rehabilitation facility (which is also considered a nursing home), then it is not too late. Anyone who is trying to preserve assets for a loved one who requires enhanced care will find the benefits of sheltering and protecting those assets with the help of an elder law attorney. In some cases, even if all the assets are gone or spent down to zero, there could be prior transfers of assets or problems that could prevent eligibility. In order to deal with those problems, you’ll need to seek counsel with an elder law attorney to make sure that Medicaid eligibility is not affected and that you don’t face discharge from the nursing home.
What Do You Say To People Who Think It’s Wrong To Hide Assets In Order To Qualify For Medicaid?
The term “hiding” implies that you are doing something which you are not supposed to be doing, such as removing money from your mom’s account and putting it into another account or in a safe deposit box. Actions such as these would be discovered by the state of Florida and would prohibit someone from qualifying for Medicaid. From a moral or ethical standpoint, whether or not it is okay to seek to use the Medicaid rules to transfer assets is all up to the individual person. If you feel like the proper action is to not take advantage of any existing legal path to protect assets, and to instead spend all of the money on a nursing home at a rate of $8000 to $9000 per month, then you are welcome to do that.
Once you qualify for Medicaid, all your income is being used to pay the nursing home, with Medicaid covering the rest of that nursing home bill. After that, your loved ones are only left with $105 a month from their income to use for discretionary or quality of life spending. So, if your loved one needs anything that costs more than $105, then you (as the caregiver) will likely feel morally and ethically responsible to provide those things using your own assets (that is, if you don’t take advantage of any rules to enhance your life or the life of your loved one, and you are okay with spending your own money to do so).
The existing Medicaid rules that give us the ability to shelter assets are there for the purposes of enhancing the quality of life. The US Congress created these rules and the state of Florida has implemented these rules that allow us to enhance the quality of life. As a caregiver, it is up to you to decide whether or not you want to take advantage of these rules. I’ve worked with both staunch Democrats and Republicans in this field, and I’ve had criticisms and approvals come from all levels of the political spectrum. So, it’s up to the individual person to decide how they want to care for their loved one.
For more information on Transferring Assets To Community Spouse, an initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (904) 398-6100 today.
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