Medicaid Planning: Spousal Refusal and Other Alternative Options, Asset Limits, Required Notice, Pitfalls to Avoid

Description

Having a sound Estate Plan in place is crucial for those seeking Medicaid asset protection for future care needs. A sudden illness requiring immediate long-term care placement or a degenerative diagnosis that will require extended care can devastate a family. Elder law attorneys may be able to utilize spousal refusal as part of Medicaid planning and other alternative methods to protect income and assets.

A Medicaid applicant's assets and income must meet certain state-mandated levels. Transfers of assets made within the 5 years prior to an application for nursing home Medicaid will be penalized if proper planning is not done. There are certain transfers that are exempt from penalty and certain Medicaid programs that do not impose a lookback, depending on the state of residence.

If the assets of the spouse of a Medicaid applicant exceed the asset and income levels, specific tactics can be used to gain eligibility for one spouse while protecting the assets of the other. Certain states provide for this option while others provide specific rules to prevent such tactics, which may lead to litigation. Elder law attorneys must understand the processes and requirements for utilizing spousal refusal to maintain Medicaid eligibility and other available options, such as promissory notes, loans, and other transactions.

Listen as our distinguished panel of attorneys experienced in Medicaid asset preservation reviews the eligibility requirements and discusses best practices in using spousal refusal, promissory notes, and other approaches to preserve the assets for Medicaid eligibility.