Professional Medicaid Planning Assistance
The Medicaid look-back period is a very serious and complicated matter. The best way to avoid violating this period and receiving a penalty of Medicaid ineligibility is to consult a Medicaid planner before gifting or transferring any assets. A Medicaid planner can also offer assistance if you have violated the look-back period. One can learn more or be connected with a Medicaid planner here.
We Provide Options: Sell Home And Benefit From Money Or Sell Real Estate To Purchase A New Home
Some Floridians want to sell their house in order to downsize or even upsize . In either situation, with proper Medicaid planning, eligibility for benefits can be maintained. In fact, in our medicaid-planning lawyers frequently work with realtors when our clients either want to sell their house and protect the proceeds from Medicaid or they want to purchase real estate for medicaid asset-protection purposes.
If you dig into the Department of Children and Families ESS Medicaid policy handbook , you will find Sections 1640.0537, 1640.0543.03 and 1640.0307.01, which are helpful.
1640.0537. Good Faith Effort to Sell.
This section of the medicaid manual states that property may be temporarily excluded if the individual is making good faith efforts to sell at fair market value. So just by attempting to sell any property , that property is deemed not-countable for Medicaid-eligibility purposes. But the Medicaid application examiner wont just take your word for it, they will ask for proof. You can verify that you are attempting to sell the real estate by providing your listing agreement with a real-estate broker, MLS listing, newspaper listing, etc…
You also must be reasonable. If your property is worth $200,000 and you are “attempting to sell” it for $800,000, that would not pass the good-faith effort test.
1640.0543.03. Home Replacement Exclusion.
Can I Sell My Car While On Medicaid
Medically challenged people who are physically disabled or low-income earners seek Medicaid when they decide that they cannot take care of themselves anymore, especially if they have little to no money for health care that will maintain their lives.
Medicaid is a program that was created by the federal government, in collaboration with state governments to provide proper healthcare, reducing and subsidizing the cost of healthcare for medically challenged people who have limited income resources and cannot afford private healthcare of their own.
The benefits provided by Medicaid and that are peculiar to the program are personal care services, nursing home care, standby personal services, etc.
The program provides for all, or at least, most of the medical needs of the applicant, while the applicant pays whatever is remaining, and usually, they are unable to pay with cash as many applicants are either not active income earners, or their income cant keep up with the rest of the fees.
As a result, they end up owing the state some amount of money when they die, which makes the state take over whatever properties they have after their death when they do not have an eligible relative to assume ownership of their estate.
Since this is the case, the policies of the program ensure that non-countable assets should remain in the ownership of the applicant while on Medicaid.
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Cant I Just Give Away My Money So I Can Qualify For Medicaid
No. In Pennsylvania, the law imposes a penalty for every transfer that a Medicaid applicant has made within the last five years for which they dont receive fair value in exchange. In other words, if a Medicaid applicant makes a gift of more than $500 per month, within five years of applying for Medicaid, they will be ineligible for benefits.
For example: You have a car worth $10,000. You decide to give it to your son as a gift. One year later, you apply for Medicaid. Even if you are otherwise eligible, you have made a gift in the amount of $10,000 within five years of applying for Medicaid. You will be ineligible to receive Medicaid benefits for a certain period of time.
Heres another example. You have a car worth $10,000. You decide to sell it to your son for $10,000. You then spend that $10,000 on your medical needs. One year later, you apply for Medicaid. As long as you meet the resource requirements, you can qualify for Medicaid. Why is this different? Because, rather than giving the car away, you sold it for fair value then spent the money on your own needs. This is perfectly permissible.
How Will Medicaid Know If I Sell My House
Medicaid is a health care program provided by the United States to support those that are not capable of paying their hospital bills themselves.
But once you are eligible for Medicaid and you want to sell your house, the question is: How will Medicaid know if I sell my house?
Medicaid will know you sold your house through your financial report. Since Medicaid checks bank accounts, they know youre not capable of paying the healthcare costs. Therefore, while re-registering for Medicaid, your financial records would be looked into, and there, they will know that you sold your house to have so much money in your account.
You cant sell your house after you are eligible for Medicaid. This is because the money you get from it will be more than the money you should have in your account. If your house is not sold, it wont affect your eligibility status. So selling it or renting it out while in the nursing home will affect your eligibility status.
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Does Buying A New Car Affect Medicaid
The question is, does buying a car affect Medicaid?
Yes, buying a car while on Medicaid will affect your Medicaid because you would be questioned on how you get the money to buy the car. Since you shouldnt have more than $2,000 to qualify for Medicaid, you cant buy a car while on Medicaid to avoid losing your Medicaid coverage.
Medicaid is a healthcare program that is provided and financed by the federal and state government of the United States. It is known by different names in different states like DelaniCare in Alaska, Medi-Cal in California, and so on.
It is a program for those who dont earn much income or are below the income limit rate given by the state government.
The eligibility criteria for Medicaid differ from state to state. So you have to be familiar with Medicaid in your state. But generally, it is granted to those that dont have much income.
Medicaid doesnt pass from State to state. If you are moving to a new state, you have to apply again for Medicaid when getting there. And its really not an easy process.
Please Answer A Few Questions To Help Us Determine Your Eligibility
Many individuals who apply for Medicaid find that they have too many assets to qualify. Medicaid is a “needs-based” program, and a successful Medicaid applicant must have insufficient assets to pay for one’s own care. Federal law establishes a benchmark for the amount of resources an individual may own to qualify for the program.
The process of reducing the value of your assets to qualify for Medicaid is referred to as “spending down.” One misconception is that the only way to reduce the value of one’s assets is to spend them on the Medicaid applicant’s medical care. In reality, there are a wide range of expenditures that will reduce the value of the applicant’s estate that will enable Medicaid eligibility.
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Some Assets Don’t Count Toward The Medicaid Limit
Not everything your parent own counts as an asset for Medicaid purposes. For instance, their home is generally exempt, unless they have a significant amount of equity in it. Even then, the equity won’t count if your other parent is living in the house, or a dependent child or other relative. At least one automobile is also exempt, as well as household goods, personal effects, life insurance policies, and assets that produce income. Other assets, including cash in the bank, can’t add up to more than $2,000 for one parent or $3,000 for both parents . The rules are different when only one parent is applying for Medicaid.
Leave It In Your Name Until After We Have Secured Medicaid Benefits And Then We Can Discuss Disposition Of It
Consequently, the title to the vehicle should be left in your mother’s name even though she would not be driving it. Yes, selling your car while on medicaid does not affect your program, therefore you can sell your car while on medicaid however, it is best to leave your car in your possession and not sell it while you are applying for medicaid benefits. I would ask the caseworker how best to deal with the proceeds from the car sale so that they do not face a transfer penalty from medicaid on the sale of the car.
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What You Can And Cant Keep With Medicaid: Cars And Trucks
Most of us own a vehicle. Lets face it they are a necessity in life. However, when looking at applying for Medicaid, this necessity may or may not be an asset we can keep. So, what are the Medicaid rules on cars and trucks and other personal use vehicles? And, is there a way to keep my vehicle exempt?
In this Elder Law Minute, Wes Coulson, Illinois Elder Law attorney, continues with the series What You Can and Cant Keep with Medicaid and discusses the Illinois and Missouri Medicaid rules on cars and trucks and other personal use vehicles and offers advice on how planning may get you the best result.
Medicaid Qualification And Application
While applying for Medicaid, certain assets you own will have to be spent down. These are your countable assets: your savings, stocks, bonds, etc. You cant have more than $2,000 in your account but this amount also differs from state to state.
Even your income will be monitored for the last five years. Different transactions you made and how much they were will be brought to the limelight. If these transactions are taken seriously before you are accepted then your transactions will be monitored while you are on Medicaid.
You cant transfer a huge amount of money above the income limit because it will make you ineligible. You might be thinking of spending your money to buy certain things like cars while on Medicaid. This will raise the question: Does buying a new car affect Medicaid?
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Can Medicaid Force The Sale Of A Car That Is In My Father’s Name Even Though I Make The Payments
This will be a question of local application of the Medicaid rules, so you will have to consult with an elder law attorney in your state. But as an example of how the law may be applied, heres how the rules work in Massachusetts: A Medicaid recipient may have one vehicle so long as either the value is under $4,500 or the recipient can prove a need for the car. In your fathers case, he has two. So, he would have to get rid of one. He can sell one and spend down the proceeds. He may also be able to transfer the car that you drive to you, but that is a gray area. Hes not allowed to give away assets, but you may be able to successfully argue that he has ownership in name only and the vehicle is really yours. Again, you need to consult with a local elder law attorney on this given the local variation in how vehicles are treated and the specifics of your situation. To find an attorney near you, go here: .
Local Elder Law Attorneys in Your City
Only Transfers For Less Than Fair Market Value Are Problematic
The law doesn’t prohibit all transfers. It addresses only those made for less than “fair consideration,” or “fair market value.” For example, if your parents own artwork appraised at $30,000, they can’t give it away or sell it for anything less than that during the look-back period. If they sell the artwork for $2,000 to a relative, the $28,000 difference would count against them for Medicaid eligibility. On the other hand, if your parents sell their house to you for fair market value the year before they apply for Medicaid, there wouldn’t be a transfer penalty .
Also, one parent can transfer any assets to the other parent without jeopardizing his or her eligibility for Medicaid. And a Medicaid applicant can transfer a house to the following individuals without penalty:
- a child who is under 21, blind, or permanently and totally disabled
- a sibling who has an ownership interest in the home and who has been living in the home for at least one year before the applicant goes to a nursing home, or
- an adult child with no disabilities who has been living in the home for at least two years before the applicant goes to a nursing home, and who cared for the applicant, allowing the applicant to live at home rather than in a nursing home.
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Can I Sell My House While On Medicaid
You cant sell your house while on Medicaid to avoid getting disqualified from the program. If you sell your house while on Medicaid, the amount in your account will be greater than the income you claim to earn. Also, theres no way your savings wont be more than the stipulated amount of the state.
Rather than selling your house while on Medicaid, you have to prepare ahead. If you want to sell the house before being eligible for Medicaid, you can, and if you want to transfer it to your children or family member, you can. There are different strategies to doing this.
Although Medicaid has its general eligibility status, each state also has its specific eligibility status also. The federal and state government manage the health program.
The general requirement for one to be eligible for Medicaid is not being able to earn much income and in some cases, you cant have more than $2000 in your account. This is why many people tend to sell their houses, exotic cars because they want to look like they cant afford hospital or nursing home bills.
You can actually be eligible for Medicaid and have a house, a car, and jewelry as long the income you earn for five years is low. Your house and car are assets that wont be taken.
However, it will be weird to be on Medicaid and buy a house. How can you afford to buy a house yet cant be able to take care of yourself health-wise? Therefore, while on Medicaid, you cannot buy a house else your Medicaid program will be terminated.
Social Security Disability Insurance Vs Medicaid
The first thing to know is that Medicaid does place restrictions on how many vehicles you can own and still qualify.
If you qualify for SSDI you will likely be automatically considered for Medicaid, although you are not obligated to accept it. SSDI is different from Medicaid in that there are other ways you can qualify for it, as well as the limits placed on your income and assets.
SSDI qualification is based on disability and work credits, and has less stringent rules for what you can and cant own. For example there is no limit on the number of vehicles you may have in your name on SSDI.
Because Medicaid eligibility is determined almost exclusively by financial information, the relationship between Medicaid and car ownership is slightly more complicated. Well talk more about that in the next section.
THE BEST USED SUVS UNDER $10,000
We looked into price, reliability, features, and more to create this list of the best used SUVs under $10k on the market today. Take a look – some of the best used SUVs have gone mostly overlooked or forgotten.
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Simple Vehicle Transactions That Create Big Medicaid Problems
Today we are going to take a look at another type of hidden gift. We previously looked at hidden gifts involved in transactions with a Texas nursing home Medicaid applicants homestead or house. Today we are going to look at transactions involving a Medicaid applicants car or vehicle.
For those of you visiting us for the first time, I use the term hidden gift to refer to transactions which may not appear like a gift that creates a Texas nursing home Medicaid penalty because of some technicality, when the reality is the HHSC looks past the technicalities and discovers these attempts at hiding a transfer of assets. And once discovered, a costly penalty can follow.
What Happens To My Spouse When I Go On Medicaid How Can I Spend All Of My Money When My Wife Will Be Living At Home
The law allows a married couple to set aside approximately half of their total funds for the spouse who is not in a nursing home. This person who remains at home is called the community spouse and the amount they can keep is called the community spouse resource allowance. There is a minimum amount and a maximum amount that a community spouse can keep.
There is also something called a minimum monthly needs allowance, which ensures that the community spouse has a stream of income to rely on to meet their needs. Just because a husband is going into a nursing home does not mean that his wife will be left broke. With proper planning, we can ensure that the wife lives comfortably at home while her husband receives the care he needs in a nursing home.
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