What Happens to Your Income When You're in a Home?
Your monthly income, no matter how large or small, will not affect your eligibility for Medicaid Home Care.However, Medicaid does not ignore income, and there is a limit to monthlyincome. In 2020, the limit is $895 per month. If your income is above thisamount, you have “surplus income.”When you have “surplus income,” you must either […]
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Do I Have to Pay Gift Tax?
Do Gifts Count Against Medicaid “If I make gifts of less than $17,000, are they exempt from Medicaid?” This is a common question, because gifts of less than $17,000 are not reportable for purposes of US Federal gift and estate taxes. However, they are not exempt for Medicaid purposes. Once we’re in the Medicaid world […]
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What Happens to Income on Community Medicaid
Your monthly income, no matter how large or small, will not affect your eligibility for Medicaid. However, Medicaid does not ignore income, and there is a limit to monthly income. In 2019, the limit is $879 per month [increased to 904 for 2021]. If your income is above this amount, you have what Medicaid considers […]
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Paying for Long-Term Care
Unless you are very wealthy and can afford to pay amounts like $5,000 to $20,000 per month for your care, you need to have a plan. You have two options, other than paying with your own money. One option is long-term care insurance, if you can afford the premiums and if your age and health […]
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What is a Medicaid Trust?
A Medicaid Trust is the name Elder Law attorneys give to trusts that we use to facilitate Medicaid eligibility. It is an irrevocable trust. When you transfer assets to this type of trust, the assets do not belong to you anymore. You don’t and can’t control them. Therefore, the assets in the trust are not […]
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Will I Get in Trouble If I Transfer My Assets?
Medicaid eligibility is based on your having only a very small amount of assets. If you want to become eligible for Medicaid without “spending down” virtually all of your life’s savings, you will likely have to transfer your assets to another person. Many people worry that doing this will get them in trouble. In […]
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Choose Your Trustee Wisely
This is Strategy #13 from Lamson & Cutner’s publication, “25 Strategies to Prevent Financial Ruin from Long-Term Health Care Costs.” Click here to see the other strategies. Choose your trustee wisely. When an applicant for Medicaid decides to transfer assets into a trust, the trust must be irrevocable. That means you no longer have control of […]
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Private Annuities can Help Protect Your Assets
This is Strategy #14 from Lamson & Cutner’s publication, “25 Strategies to Prevent Financial Ruin from Long-Term Health Care Costs.” Click here to see the other strategies. Annuities have an advantage. An effective method to protect cash and assets for someone who needs nursing home care, and who has transferred assets within the "look back" period is […]
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Use a Caregiver Agreement to Transfer Cash Assets.
This is Strategy #15 from Lamson & Cutner’s publication, “25 Strategies to Prevent Financial Ruin from Long-Term Health Care Costs.” Click here to see the other strategies. A Caregiver Agreement is a legal contract between an individual who needs various support services and the party who is to provide them. The caregiver can be a son, daughter or other […]
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Keep Your Medicare Insurance
This is Strategy #16 from Lamson & Cutner’s publication, “25 Strategies to Prevent Financial Ruin from Long-Term Health Care Costs.” Click here to see the other strategies. Keep your Medicare insurance. In most instances, you'll have access to a wider range of doctors. Be careful about sales pitches for coverage under Medicare Advantage plans, which require […]
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