Liquidating assets before nursing home
(Topics below are “hotlinked” for convenience) INTRODUCTION THE ASSET RULES Real Property: The Home Real Property: Tenancies-in-Common Real Property: Life Estates Real Property: Joint Tenancies Personal Property: Household and Personal Effects Personal Property: Automobiles Personal Property: Insurance Personal Property: Retirement Plans/IRAs Personal Property: Annuities Personal Property: Burial Contracts Personal Property: Trusts TREATMENT OF ASSETS FOR A MARRIED COUPLE THE TRANSFER PENALTY How The Rules Work Exceptions to the Transfer Penalty Hardship Exception to Transfer Sanction LIENS AND ESTATE RECOVERY TREATMENT OF INCOME Spousal Income THE MEDICAID APPLICATION SUMMARY There can be no doubt but that the statutes and provisions in question, involving the financing of Medicare and Medicaid, are among the most completely impenetrable texts within human experience.
A MAP like this is very complicated and must comply exactly with the Medicaid rules in order to work; it is NOT a do-it-yourself plan! Another MAP (the gift/annuity plan) is similar to the MAP above, except that instead of a loan, the excess assets are used to purchase a Commercial Immediate Payout Annuity.
Just like for all of these MAP plans, you need professional assistance.3.
Another MAP (Rental and Care Agreements) can be used when a potential Medicaid applicant is ill, but is not yet in the nursing home.
Costs around the country can range as high as 0,000 per year for nursing home care. HOW WILL YOU PAY FOR SUCH COSTLY NURSING HOME CARE? Self-pay with Private Long-Term Care Insurance A growing number of insurance companies offer long-term nursing home care insurance policies.
Fifty percent of all couples with one spouse in a nursing home have lost everything within a year! However, these policies can be very expensive and restrictive.