Unfortunately, the State of Maryland does not take pre-nuptial agreements into consideration when determining Medicaid eligibility. All assets owned by either spouse are considered jointly owned and must be divided and spent-down exactly as they would if there was no pre-nuptial agreement in place. The only way a pre-nuptial agreement is effective is if the couple actually divorces.
We frequently hear from individuals who have gifted $12,000 each to their children and grandchildren, over the past few years. However, this gifting is a myth. In fact, the $12,000 figure is now $13,000. But this is an IRS rule regarding filing a gift tax return. This has nothing to do with Medicaid law. If you make a gift, within five (5) years of qualification of Medicaid, you will penalized. For example. If you gift to your family $68,000, within the five (5) year period, you will be penalized for TEN (10) months, before you receive Medicaid. Therefore, who will…
All Medicaid recipients are able to keep some of their assets and still qualify for benefits. The key is to understand what Medicaid considers a “countable” versus a “non-countable” asset in Maryland. For instance, a single person in Maryland can keep a few items, a specific type of pre-paid funeral plan, personal belongings, insurance up to $1,500 and up to $2,500. A married couple, one living in the community, and one residing in the nursing home can keep the same exempt assets plus an automobile, and their home, providing the home is under $500,000, and up to $109,560. However, it’s…
If you were born after 1956, listen up: Medicare may not be there for you when you retire. Now, this is not just some statistical research mumbo-jumbo. No, The Wall Street Journal last week reported in their SmartMoney section that House Budget Committee Chairman Paul Ryan’s solution to stem rising Medicare costs is to end the current Medicare program for people born in 1957 and after. Starting in 2022, when those American begin turning 65, they would no longer get their medical bills paid directly by the government. According to the Centers for Medicare and Medicaid Services, Medicare spent an…
It is unclear whether Speaker of the House John Boehner (R-OH) and Senate Majority Leader Harry Reid (D-NV) will be able to come to an agreement regarding the federal budget for the rest of this fiscal year. The House has offered a short-term, one week continuing resolution with $12 billion in cuts from fiscal year 2010 funding levels for the coming week. The Senate has countered with a proposal for a one week continuing resolution at the current funding levels. The President is not encouraging these short-term solutions and is pressing for a long-term agreement. We are monitoring the budget…
In the State of Maryland, and Federal Law parents of a special needs child can set up a Supplemental (or a Special Needs) trust for their children which will not disqualify them from government benefits, such as Social Security and Medicaid. Unfortunately, prior to this protection, parents would simply disinherit their disabled children rather than see their hard earned savings be squandered to the state. Now, the child receives money from the trust for their extra needs i.e. what the state does not supply, such as vacations; special equipment; medical help that the state does not provide or supply, glasses,…
Purchase a whole life insurance, with a rider to the policy which pays for long-term care ( home care or care in an assisted living or nursing home). If you do not utilize the long term care benefit, your beneficiary will receive the policy’s face amount. Example. You apply for a $500,000 whole-life insurance policy, with a rider for long-term care that will pay you 2% of the face amount each month if you need long-term care services. Therefore, you will receive up to $10,000 monthly ($500,000 x 2%) to pay for home-care, assisted living, or nursing home services. Consequently, if…
In a study in the journal Health Affairs, that expansion of home-based care can save states money over the long run. The paper looked at Medicaid data from 1995 to 2005. States incurred extra cost when they spent to create new social service programs to care for people at home, but that expense, over time, paid for itself because it was cheaper to care for people at home. Policymakers often cite the "woodwork effect" as a reason to worry about expanding home-based care. This is the argument that if states provided people what they want — home-based care — then…
In 1999, the U.S. Supreme Court ruling in Olmstead v. L.C. said that the unnecessary institutionalization of people with disabilities is a form of discrimination. State Medicaid programs are required to provide alternatives so that the elderly and disabled can choose to get their care at home, instead of in state institutions or nursing homes. But the Supreme Court said there were limits. A doctor, representing the state, has to determine that the person is capable of living at home. The person has to want to get that care at home. And a state when considering its responsibility to move…
Those who work for the Medical Assistance office cannot offer you legal and planning advice. Therefore, you may not learn about laws that allow you to receive Medical Assistance and keep part or all of your spouse’s income, your income, your home and assets. Also, they do not represent you, they represent the State. Medical Assistance has rules and regulations in place to ensure families don’t lose their home or all of their assets to the nursing home. It is important to seek the advice of Senior Life Care Planning before you loose all of your assets. We will explain…
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