People are often in need of Medicaid after a sudden health crisis or changes in their circumstance, meaning spouses might apply for Medicaid at different times. Medicaid eligibility rules allow a healthy spouse to keep their income and property while the other spouses receive Medicaid benefits. With these benefits comes limits as to what property the spouse can retain.
Keeping the house
Medicaid has special rules that deal with spousal protections to ensure they have enough to live on. If one spouse enters a nursing home, the other spouse is allowed to continue living in the family home.
This applies to a spouse keeping the family home. However if they decide to sell it then the nursing home spouse will no longer be eligible for Medicaid due to the added resources from the home sale. This can lead a Medicaid agency to attempt to recover care costs after the nursing home resident has passed away.
Keeping your own income
While some or all a Medicaid applicant’s money goes towards the nursing home, the community spouse’s income is usually not counted in determining eligibility. However if they earn a significant amount of money, then they may be required to pay for some of the costs.
In order to qualify for benefits a person’s income must be below a certain threshold. If income needs to be spent down, it can be transferred to the community spouse if they need additional financial support.
Both state and federal laws set limits on a spouse’s income that a community spouse may keep. This is called the minimum monthly maintenance needs allowance (MMMNA). The federal minimum is currently $2,115 while the maximum is $3,259.50 with the exact dollar amount changing every year.
Shared assets
Community spouses can keep a certain portion of assets called the community spouse resource allowance (CSRA). The federal maximum for this allowance is $130,380, while the federal minimum is $26.076
Finding an elder law attorney
If you want to keep the family home safe, then you can create an asset protection trust to hold ownership of the home. This will shield it from medicaid collection. Your circumstances may also require you to need a guardianship of financial power of attorney over an ailing partner.
The best way to protect yourself and your loved ones is to contact your local elder law attorney. They will make sure that you have the best plan to protect your future.
Want to know your best options
with zero hassle and zero risk?
Contact us today for a no-risk consultation, and we’ll answer all your burning questions. It’s quick and easy.
Call and Schedule a Consultation Today
(479) 434-3531
Jamison Bonds, VA Accredited Attorney
One of the many benefits of being an elder law attorney is getting to work with selfless clients who act not out of their own self interest, but out of a deep concern for the people they love. That’s why I love helping families enjoy peace of mind and protect their hard-earned assets.
Experience The Peace of Mind You & Your Loved-One Deserves
Over the course of nearly a decade, we’ve helped more than 1,200 of your neighbors with their estate planning and elder law needs. Now we can help you achieve the best possible outcomes for your family.