Savings your assets and apply for Medicaid medical assistance.
When a family or loved one hears your spouse/parent/partner are in need of nursing home care, they immediately panic and fear all of their assets are going to be needed to support the ill person’s nursing home bill. Most people do not have a clue about Medicaid eligibility, because they never needed to use such services. Rumors circulate scaring people that Medicaid will take everything they had saved for the past 60 to 70 years. Most nursing homes financial offices will interview the family and discuss financial payments. If they see that the ill applicant and/or his/her family have money they would suggest to spenddown. What is Spendown? Medicaid imposed a limit regarding income and resources the applicant can posses and what the spouse is allowed. Spenddown means that you spend your assets on the care until you meet those numbers; however, although this concept works it’s not the only option out there.
Another option is to transfer the excess resources of the ill spouse to the well spouse and the ill spouse becomes financially eligible the following month.
Suppose there is no spouse! this person is not excluded from saving some of his/hers assets. They have the opportunity to gift some of their assets and with the remaining assets purchase a promissory note or annuity. This allows the ill person to protect a good portion of their assets depending on their income and nursing home expenses.
Spenddown is not the only solution!
For more infromation about Medicaid Eligibility, contact us for a Free Consultation.