So, let’s state this theoretical couple with $100,000 can see down the road that the need for long term care is coming. Perhaps among them has Parkinson’s illness or Alzheimer’s. If they distribute $50,000 to their kids, how does Medicaid look at that?
Once again, timing is very important. If you are discussing wanting to get Medicaid quickly, handing out your cash is not a great concept. You shouldn’t do this unless you are sure that you will not need to make an application for Medicaid for at least five years.
What if the circumstance is “My husband is in the retirement 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 type of a case, we develop the constant period of care and we develop what your possessions are. That tells us what you have to invest in order to certify for Medicaid. Let’s say you have a house and a cars and truck and some other prized possessions. Your home and cars and truck are not counted; they are considered “exempt.” The remaining assets could be any combination of things: his IRA, your Individual Retirement Account, a checking account, a little pot of gold in the basement, cash, some stock, an annuity, the cash value of a life insurance coverage policy, a second cars and truck, etc. That all gets combined. If it’s $100,000 your other half can’t get Medicaid until that $100,000 is reduced to $50,000. And there are no guidelines that say how you spend the cash– other than that you can not give it away.
If you do give it away, you’re going to create an ineligibility duration for Medicaid.
There are two exceptions:
u2022 If you have a disabled kid, you are enabled to make gifts to the disabled child– any quantity, any possession.
u2022 If you have a daughter or son who lives in your home with you and supplies care that keeps you out of a retirement home for at least 2 years, you are enabled to give your house– and only your house– to that care-providing boy or daughter. Not grand son, not granddaughter, not uncle, not cousin, not next-door neighbor– child just.