K. Gabriel Heiser
Attorney, author, Medicaid asset protection planning
K. Gabriel Heiser, J.D., is an attorney with over 25 years of experience in elder law and estate planning. He is the author of "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets," an annually updated practical guide for the layperson.
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Question
Do I have to report to Medicaid when applying for my Mom?
The general rule is that joint interests are deemed available to the Medicaid applicant except to the extent that the applicant can prove... The general rule is that joint interests are deemed available to the Medicaid applicant except to the extent that the applicant can prove contribution by the other joint owner(s). So as long as you can prove the source of the funds in the account is yours and not your mother's, it won't be deemed an available asset of your mother's for Medicaid purposes. see more
Question
Can my mother lose her house due to nursing costs?
If your brother takes care of your mother for at least a two-year period immediately before she enters a nursing home, and such care... If your brother takes care of your mother for at least a two-year period immediately before she enters a nursing home, and such care enables her to delay going to a nursing home, there is no penalty on that transfer for Medicaid eligibility purposes. If you qualify, that would enable your mother to get the house out of her name: if not, then the house would be subject to a claim by your state following her death, for the amount of Medicaid benefits it paid out during her lifetime. An elder law attorney can assist you with this if you qualify. see more
Question
How does one protect their assets from nursing homes?
It sounds like you need to read up on the basic rules on how to pay for the nursing home, what are exempt assets and what are not, what the... It sounds like you need to read up on the basic rules on how to pay for the nursing home, what are exempt assets and what are not, what the state can take after the nursing home resident on Medicaid passes away, and what are the planning options available to you. That is exactly what my book is about, and I encourage you to get a copy for yourself. It is called "How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets".
There is also good, free advice on this website, including a number of articles I have written. I encourage you to begin your reading!
As for whether you should use your own money to pay for the nursing home or avail yourself of Medicaid, that is a personal decision. As for me, I never want to pay voluntarily more tax than is legally required, so you probably do not want to pay more to the nursing home than legally required, either, but that is up to you. see more
There is also good, free advice on this website, including a number of articles I have written. I encourage you to begin your reading!
As for whether you should use your own money to pay for the nursing home or avail yourself of Medicaid, that is a personal decision. As for me, I never want to pay voluntarily more tax than is legally required, so you probably do not want to pay more to the nursing home than legally required, either, but that is up to you. see more
Question
What are the specific steps for applying for Medicaid?
For a link to the various state agency contacts (and the rules for each state, how to apply, etc.), see... For a link to the various state agency contacts (and the rules for each state, how to apply, etc.), see http://medicaidsecrets.com/updates/#Agencies. see more
Question
Can someone receive two personal need allowances one from the VA's Aid and Attendance program and the other fr...
Such $90/month payment is not considered income and does not have to be paid to the nursing home, and it is paid in addition to the... Such $90/month payment is not considered income and does not have to be paid to the nursing home, and it is paid in addition to the personal needs allowance.
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Note that the $90 limit only applies if the veteran (or spouse of veteran) has no spouse or child. However, if the child has their own money (i.e., is not a dependent) then they are not counted as a child for these purposes (see https://www.law.cornell.edu/uscode/text/38/1522#b)
You also may like to know that on February 6, 2015, the state of New Jersey settled a class action lawsuit by agreeing not to count VA payments as income for Medicaid purposes
Here's the actual rule: 38 U.S. Code § 5503 and 38 CFR 3.551(i). see more
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Note that the $90 limit only applies if the veteran (or spouse of veteran) has no spouse or child. However, if the child has their own money (i.e., is not a dependent) then they are not counted as a child for these purposes (see https://www.law.cornell.edu/uscode/text/38/1522#b)
You also may like to know that on February 6, 2015, the state of New Jersey settled a class action lawsuit by agreeing not to count VA payments as income for Medicaid purposes
Here's the actual rule: 38 U.S. Code § 5503 and 38 CFR 3.551(i). see more
Question
How long does it take to settle an estate that's technically large?
How long it takes to settle an estate depends on many factors. If the estate is below the estate tax threshold (well over $5 million, now),... How long it takes to settle an estate depends on many factors. If the estate is below the estate tax threshold (well over $5 million, now), then the minimum length of time is determined by the number of months your state allows for creditors' claims to be filed. Some states have a six-month period, although most require you to wait at least one year.
The estate attorney will help the executor get appointed as such and help them prepare the accounts and inventory, etc. Releases from all beneficiaries must be obtained, indicating they received what they were supposed to get under the will (or, if no will, according to the state law).
I hope that helps! see more
The estate attorney will help the executor get appointed as such and help them prepare the accounts and inventory, etc. Releases from all beneficiaries must be obtained, indicating they received what they were supposed to get under the will (or, if no will, according to the state law).
I hope that helps! see more
Question
Is there a way of protecting my assets if my husband has to go into a nursing home?
As an elder law attorney, I have helped many hundreds of clients qualify for Medicaid while protecting their assets. The goal is to... As an elder law attorney, I have helped many hundreds of clients qualify for Medicaid while protecting their assets. The goal is to preserve as much as legally possible, similar to good tax planning. While there are benefits to starting early (because of the five-year lookback rule others have discussed), it is never too late to take advantage of the laws that permit you to convert assets from countable to non-countable (i.e., exempt).
Because this is such a complex subject, I wrote a series of ebooks that cover the different areas of interest, as well as a print book that summarizes both the laws and the planning opportunities (including a section on how to find an elder law attorney in your area). good luck with your situation! see more
Because this is such a complex subject, I wrote a series of ebooks that cover the different areas of interest, as well as a print book that summarizes both the laws and the planning opportunities (including a section on how to find an elder law attorney in your area). good luck with your situation! see more
Question
Will my sister be responsible to repay my mothers nursing home expenses paid by Medicare?
The short answer is that a sibling is never responsible for the debts of another sibling, whether it is Medicaid or otherwise,unless they... The short answer is that a sibling is never responsible for the debts of another sibling, whether it is Medicaid or otherwise,unless they signed some sort of contract specifying otherwise (which would be very unusual). Merely claiming her sister as a dependent will not cause her to be responsible for her sister's Medicaid debt. see more
Question
How much money can I deposit in my fathers bank account before Medicaid will take it to pay down his monthly a...
To qualify for Medicaid for nursing home care, an individual applicant may have no more than a total of $2,000 in liquid assets. Certain... To qualify for Medicaid for nursing home care, an individual applicant may have no more than a total of $2,000 in liquid assets. Certain items are exempt from this calculation (car, personal property, jewelry, etc.). Thus, it is a good idea to keep the bank account balance a bit under $2,000 at all times. see more
Question
Anyone have experience with the process of dealing with elderly care receiver's house sale in reverse mortgage...
Reverse mortgages can be helpful in covering expenses for an elderly person or couple while at least one of them continues to reside in the... Reverse mortgages can be helpful in covering expenses for an elderly person or couple while at least one of them continues to reside in the home. For a single person, once they need to move out because their care needs can no longer be met in their home, then the reverse mortgage rules require the house be sold.
So while the home may be exempt for Medicaid, usually there is no other way to pay off the borrowed and spent reverse mortgage balance short of selling the house. Any cash balance after the sale must be spent down or converted to a form of asset that is non-countable for Medicaid purposes. Depending on the amount, it may be possible to spend it all down on pre-paid funeral/burial, car, personal items. If the balance is too large to eliminate that way, then consider a Medicaid annuity (see my articles about that topic on this website). see more
So while the home may be exempt for Medicaid, usually there is no other way to pay off the borrowed and spent reverse mortgage balance short of selling the house. Any cash balance after the sale must be spent down or converted to a form of asset that is non-countable for Medicaid purposes. Depending on the amount, it may be possible to spend it all down on pre-paid funeral/burial, car, personal items. If the balance is too large to eliminate that way, then consider a Medicaid annuity (see my articles about that topic on this website). see more
Question
Does it have to be probated or a small estate claim be filled?
If the real estate was solely in the name of her now-deceased husband, then the ownership of that property passes under his will, if any,... If the real estate was solely in the name of her now-deceased husband, then the ownership of that property passes under his will, if any, otherwise by the state laws on intestacy Without knowing the facts of the case (value of the property, how many children, what state), probably the property would pass to his wife, in the nursing home and be considered an exempt asset. Upon her death, the state will want to be repaid for its Medicaid payments made on behalf of your sister, and will insist on the house being sold, at that time see more
Question
How does the penalty under Medicare part D work?
https://www.medicare.gov/part-d/costs/penalty/part-d-late-enrollment-penalty.html offers a good explanation of the penalty imposed if a... https://www.medicare.gov/part-d/costs/penalty/part-d-late-enrollment-penalty.html offers a good explanation of the penalty imposed if a person was eligible for Medicare but did not sign up for Part D coverage: "Medicare calculates the penalty by multiplying 1% of the "national base beneficiary premium" ($34.10 in 2016) times the number of full, uncovered months you didn't have Part D or creditable coverage. The monthly premium is rounded to the nearest $.10 and added to your monthly Part D premium." See the examples at the link above. see more
Question
Can an adult child be forced to pay for their parents nursing home?
Please see my article on this site:
https://www.agingcare.com/articles/filial-responsibility-and-medicaid-197746.htm
https://www.agingcare.com/articles/filial-responsibility-and-medicaid-197746.htm
Question
What to do with husband's whole life insurance policy?
Only the cash value is counted when you apply for Medicaid, so consider borrowing against the cash value to reduce its value, or simply... Only the cash value is counted when you apply for Medicaid, so consider borrowing against the cash value to reduce its value, or simply have him assign ownership to you (where it can be part of your exempt assets of $119, 220). To answer your question, yes, you can safely wait until after the application and then have him transfer it to you as part of your CSRA. see more
Question
If someone covered by Medicaid is now listed as dependent on another's tax return, does that person become ine...
In order to claim a parent as your dependent for income tax purposes, you must provide more than half their support for the year. However,... In order to claim a parent as your dependent for income tax purposes, you must provide more than half their support for the year. However, such support can terminate at any time you so decide. Thus, such payments are not relied upon by Medicaid eligibility rules. Essentially, you are making gifts to your parent when you pay their bills.
This question has actually been answered on this site, here: https://www.agingcare.com/questions/If-I-claim-my-mother-as-a-dependent-on-my-taxes-can-she-still-be-eligible-for-medicaid-138458.htm see more
This question has actually been answered on this site, here: https://www.agingcare.com/questions/If-I-claim-my-mother-as-a-dependent-on-my-taxes-can-she-still-be-eligible-for-medicaid-138458.htm see more
Question
$500/day for nursing home while Mom is in hospital. Legitimate Medicaid spend-down?
Lolli47 is correct. As long as the money is spent for the benefit of the person whose money it is, it is not a gift and will not be... Lolli47 is correct. As long as the money is spent for the benefit of the person whose money it is, it is not a gift and will not be questioned by Medicaid. see more
Question
Medicaid denied my mother because of a life insurance policy that has accumulated some money?
If you want to keep the policy in force, then borrow the cash value and use the cash to purchase a pre-paid funeral and burial policy... If you want to keep the policy in force, then borrow the cash value and use the cash to purchase a pre-paid funeral and burial policy (maximum permitted amount varies state-to-state). You don't say if she owns a home (exempt asset) but if so, the money can also be used for improvements to the home. If not, you also can simply spend the money on the nursing home bill till you are below the $2,000 maximum cash limit, then re-apply to Medicaid. see more
Question
Can my grandmother spend down her funds on renovating her room in my house?
Good advice from Igloo572. As for the details of a personal services contract, it varies from state to state. I have a detailed section in... Good advice from Igloo572. As for the details of a personal services contract, it varies from state to state. I have a detailed section in my book that deals with this, and gives examples of what will and won't fly in most states. see more
Question
Can I place all the money from the proceeds of the car sale into a Funeral Trust Fund I opened for her?
While one auto of any value is exempt from Medicaid, once it is sold the proceeds are countable as cash. If that cash puts the Medicaid... While one auto of any value is exempt from Medicaid, once it is sold the proceeds are countable as cash. If that cash puts the Medicaid applicant over the $2,000 threshold, it must be spent down or converted into some asset that is exempt (such as a funeral/burial policy) before the end of the month in which the car was sold. see more
Is there such thing as a POA for after death?