So, let’s say this theoretical 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 hand out $50,000 to their kids, how does Medicaid take a look at that?
Again, timing is essential. If you are speaking about wishing to make an application for Medicaid soon, giving away your loan is not a great idea. You should not do this unless you are sure that you will not require to look for Medicaid for a minimum of five years.
What if the scenario is “My partner remains in the retirement 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 properties are. That informs us what you need to spend in order to get approved for Medicaid. Let’s state you have a house and a vehicle and some other prized possessions. Your home and vehicle are not counted; they are thought about “exempt.” The remaining possessions could be any combination of things: his Individual Retirement Account, your Individual Retirement Account, a checking account, a little pot of gold in the basement, money, some stock, an annuity, the cash value of a life insurance coverage policy, a second automobile, and so on. That all gets included together. If it’s $100,000 your partner can’t get Medicaid up until that $100,000 is decreased to $50,000. And there are no guidelines that state how you spend the money– other than that you can not give it away.
If you do offer it away, you’re going to produce an ineligibility period for Medicaid.
There are two exceptions:
u2022 If you have a disabled child, you are allowed to make gifts to the handicapped child– any amount, any asset.
u2022 If you have a child who lives in your house with you and offers care that keeps you out of a nursing house for at least 2 years, you are permitted to give your house– and only your home– to that care-providing daughter or son. Not grand son, not granddaughter, not uncle, not cousin, not neighbor– child just.