Do I Have to Spend All My Properties to Get Approved For Medicaid?

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Let’s say this hypothetical couple with $100,000 can see down the roadway that the need for long term care is coming. Possibly among them has Parkinson’s disease or Alzheimer’s. If they hand out $50,000 to their kids, how does Medicaid take a look at that?

Once again, timing is crucial. If you are talking about wishing to request Medicaid soon, giving away your loan is not a great idea. You should not do this unless you make sure that you won’t need to apply for Medicaid for at least 5 years.
What if the scenario is “My husband is in the nursing home now and starting next week I am going to be on the hook for $6,500 a month. What do I do?”

In that kind of a case, we establish the constant duration of care and we develop what your properties are. That tells us what you have to spend in order to certify for Medicaid. Let’s state you have a house and a vehicle and some other belongings. The house and vehicle are not counted; they are thought about “exempt.” The staying possessions could be any mix of things: his Individual Retirement Account, your IRA, an inspecting account, a little pot of gold in the basement, money, some stock, an annuity, the cash value of a life insurance coverage policy, a 2nd car, etc. That all gets combined. 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 rules that state how you spend the money– except that you can not give it away.
If you do provide it away, you’re going to develop an ineligibility duration for Medicaid.

There are two exceptions:
If you have a handicapped kid, you are allowed to make gifts to the disabled child– any amount, any property.

If you have a kid or daughter who lives in your home with you and provides care that keeps you out of a nursing home for at least 2 years, you are allowed to give your home– and only the home– to that care-providing boy or child. Not grandson, not granddaughter, not uncle, not cousin, not next-door neighbor– child just.