Medicaid Planning 101; protecting your home

If you receive Medicaid assistance, once you die the state has to try to recoup whatever moneys you have received for your care. This is also known as “Estate Recovery.” The first place they will look will be your home. There are ways to protect your home from recovery by the state by transferring assets.

Trusts; Cohen & Oalican, Boston, Raynham and Andover Massachusetts

Transferring your home to an irrevocable trust is one way to protect your home. If your house is sold the money must stay in the trust. If done right, $250,000 in taxable gain can be excluded for the settlor. Be careful though; once your house is in the irrevocable trust you can not take it out.

Protect your home with Life Estates; Elder Law

The easiest way to protect your home from estate recovery is by setting up a life estate. A life estate is when 2 or more people own a property. You will have primary ownership of the home for life. The second owner has ownership interest in the home but can not solely take the home until you die. At death, the home will be directly passed to that person that has interest in the home. Once the house is passed on to the other interested party, the state can not recover the home to repay Medicaid expenses.

Attorneys Cohen & Oalican specialize in Elder Law; where protecting your assets and your dignity is their core mission.

Medicaid Planning 101: Trusts

Revocable trusts are considered as assets that cannot be transferred without being counted towards your Medicaid eligibility. Irrevocable trusts are trusts that cannot be changed. Therefore you will not be penalized if you were to include irrevocable trusts into your Medicaid planning.

Testamentary Trusts; Cohen & Oalican LLP, Boston, Raynham and Andover Massachusetts

Testamentary trusts are a great way for community spouses to leave assets to their surviving spouse that is in a nursing home. The assets can be used for estate planning for certain things that are not covered by Medicaid, including specialists, therapy, legal fees or transfers to a different nursing home.

Income-only Trusts; Elder Law

Income-only trusts are used for just that; income. This trust is made so it will pay an income to you for the rest of your life. When you die the rest of your assets will be transferred to your beneficiaries. These funds are protected and are not counted as assets. If you do end up going to a nursing home the income will go to the nursing home to pay for your stay.

Attorneys Cohen & Oalican specialize in Elder Law; where protecting your assets and your dignity is their core mission. 

Medicaid Planning 101: Transferring Assets

Last week in part one of Medicaid Planning 101, we briefly explained that it is possible to transfer assets in advance so that you could protect them. This article will go more in depth of how this can be done.

Remember: you should always talk with an Elder Law Attorney before you make any estate planning decisions.

Medicaid Eligibility; Elder Law Attorneys Cohen & Oalican, Boston, Raynham and Andover Massachusetts

There is a 60 month look back period if you have just transferred assets. The length of the penalty depends on how much you actually transferred. The penalty is: assets you have transferred divided by the average cost of a nursing home in your state. This penalty does not start until you actually move into the nursing home.

Transfers that are permitted by Medicaid

• Transfers to your spouse
• If you have a child that is under the age of 21
• A sibling that has part ownership of your home
• If you had a child that lived with you for at least 2 years who cared for you
• A disabled child

While most asset transfers will be penalized, any of the above transfers are allowed and cannot be penalized.

Attorneys Cohen & Oalican specialize in Elder Law; where protecting your assets and your dignity is their core mission.

Durable Power of Attorney and Health Care Proxy - FAQ Part 3

12. When does a health care proxy take effect?

A health care proxy takes effect only when you require medical treatment and are unable to communicate your wishes concerning your treatment.

13. What if I become able to communicate my own decisions?

If you become able to express your wishes at any time, you will be listened to and the health care proxy will have no effect.

14. Who should have a copy of my health care proxy?

Your agent should have the original document. You should have a copy and your physician should have a copy with your medical records.

15. How can I get a health care proxy?

Contact an attorney at Cohen & Oalican, LLP who is skilled and experienced in this area.