So, let’s state this hypothetical couple with $100,000 can see down the roadway that the need for long term care is coming. Maybe among them has Parkinson’s illness or Alzheimer’s. If they provide away $50,000 to their kids, how does Medicaid take a look at that?
Once again, timing is necessary. If you are talking about wishing to apply for Medicaid soon, distributing your cash is not a good concept. You shouldn’t do this unless you are sure that you won’t need to make an application for Medicaid for a minimum of 5 years.
What if the situation is “My spouse remains in the assisted living home now and beginning next week I am going to be on the hook for $6,500 a month. What do I do?”
In that type of a case, we establish the constant duration of care and we establish what your assets are. That informs us what you have to spend in order to receive Medicaid. Let’s state you have a home and a car and some other valuables. Your house and car are not counted; they are considered “exempt.” The remaining properties could be any combination of things: his Individual Retirement Account, your IRA, an examining account, a little pot of gold in the basement, cash, some stock, an annuity, the money worth of a life insurance policy, a second car, etc. That all gets totaled. If it’s $100,000 your partner can’t get Medicaid until that $100,000 is decreased to $50,000. And there are no rules that say how you spend the cash– other than that you can not provide it away.
If you do give it away, you’re going to produce an ineligibility period for Medicaid.
There are 2 exceptions:
u2022 If you have a handicapped kid, you are enabled to make gifts to the disabled child– any quantity, any property.
u2022 If you have a daughter or son who resides in your house with you and offers care that keeps you out of a retirement home for a minimum of 2 years, you are enabled to give your house– and just the home– to that care-providing child. Not grandson, not granddaughter, not uncle, not cousin, not next-door neighbor– daughter or son only.