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Started By
Message
Medicaid 5 Year Look Back Advice/Loop-Hole?
Posted on 2/3/19 at 11:27 am
Posted on 2/3/19 at 11:27 am
My mother in law was diagnosed with Alzheimer’s about 8 months ago. My wife just became power of attorney and then met with the lady in charge of the Alzheimer’s association in our area.
We were looking to move/add on to our house to accommodate her mother moving in with us. Lady over the Alzheimer’s strongly discourages that because we have a 19 month old and another on the way.
She highly encouraged to let her live on her own as long as possible and to get all of her assets in a trust to protect her money from the Medicaid look back. She probably won’t qualify for awhile.
So the question is, is there a loop hole to avoid the Medicaid penalty for transferring money?
Any help is much appreciated. She probably won’t be on her own any more than 2-3 years unless she remains stable in her current condition.
We were looking to move/add on to our house to accommodate her mother moving in with us. Lady over the Alzheimer’s strongly discourages that because we have a 19 month old and another on the way.
She highly encouraged to let her live on her own as long as possible and to get all of her assets in a trust to protect her money from the Medicaid look back. She probably won’t qualify for awhile.
So the question is, is there a loop hole to avoid the Medicaid penalty for transferring money?
Any help is much appreciated. She probably won’t be on her own any more than 2-3 years unless she remains stable in her current condition.
3
Posted on 2/3/19 at 11:31 am to Dupont3
What state is this in? There are lawyers who specialize in this type of stuff. The phrase is special needs trust. Google in your area and find someone who knows what they’re doing to help you.
Posted on 2/3/19 at 11:33 am to boosiebadazz
Louisiana
Posted on 2/3/19 at 5:21 pm to Dupont3
Posted on 2/3/19 at 7:52 pm to Dupont3
If you care about your MIL, and she has sufficient assets sell them, and use the proceeds to put her in a facility other than those that operate off Medicaid only.
Posted on 2/4/19 at 6:40 am to Dupont3
So much bad information out there when it comes to this. Putting assets into a SNT is not the answer for a number of reasons.
There are a number of tools we can use in my state to get someone above the medicaid asset levels to qualify for medicaid -- e.g. buying rental properties, purchasing medicaid approved annuities, personal service contracts, burial plans, etc. It is all state dependent, though.
There are a number of tools we can use in my state to get someone above the medicaid asset levels to qualify for medicaid -- e.g. buying rental properties, purchasing medicaid approved annuities, personal service contracts, burial plans, etc. It is all state dependent, though.
Posted on 2/4/19 at 7:37 am to TheOcean
Agree—-so much bad and incomplete info. Best path forward is highly dependent on her individual financial circumstances. Find a good elder care/estate planning attorney. Call your local council on aging for a reference.
To the OP, you and your spouse should prepare yourselves to spend all of MinL’s assets on her care. Dementia is horrible and expensive, especially if you have no nearby family to assist with the care load & small children of your own. I do agree that adding onto your home is not the best solution at this point....no one can predict how quickly or slowly her condition will progress, and you may end up spending $$$ on home improvements that will be needed for long term assisted living care.
If having her live with you is truly the path forward, consider whether your 2 and 4 year old can double up in a bedroom for a few years while grandma has her own room. A very modest home expansion (closing in a porch, finishing a bonus room over a garage, reconfiguring a tub bath to an easier-to-assist walk in shower) might not be a bad idea if she will live with you. Or, is her house bigger? Maybe you all move in with her, sell (or rent) your house and live with her for a while.
Agree with the post upthread: use her assets for her care. If her assets are average/middle class, do not manage her assets to leave any windfall for surviving family. That’s not the purpose of her money—-her money is to take care of HER. Medicaid nursing homes in Louisiana can be absolutely awful places for dementia patients.
Look for reliable “day-out” programs in your area. Even if you guys all live in the same household, there will be a time when she shouldn’t be left alone.
To the OP, you and your spouse should prepare yourselves to spend all of MinL’s assets on her care. Dementia is horrible and expensive, especially if you have no nearby family to assist with the care load & small children of your own. I do agree that adding onto your home is not the best solution at this point....no one can predict how quickly or slowly her condition will progress, and you may end up spending $$$ on home improvements that will be needed for long term assisted living care.
If having her live with you is truly the path forward, consider whether your 2 and 4 year old can double up in a bedroom for a few years while grandma has her own room. A very modest home expansion (closing in a porch, finishing a bonus room over a garage, reconfiguring a tub bath to an easier-to-assist walk in shower) might not be a bad idea if she will live with you. Or, is her house bigger? Maybe you all move in with her, sell (or rent) your house and live with her for a while.
Agree with the post upthread: use her assets for her care. If her assets are average/middle class, do not manage her assets to leave any windfall for surviving family. That’s not the purpose of her money—-her money is to take care of HER. Medicaid nursing homes in Louisiana can be absolutely awful places for dementia patients.
Look for reliable “day-out” programs in your area. Even if you guys all live in the same household, there will be a time when she shouldn’t be left alone.
Posted on 2/4/19 at 9:45 pm to hungryone
I think my post was misunderstood...I do understand that is her money to use on her. The point was to save any assets that we could.
I was under the impression that Medicaid would pay a portion of any nursing home/situation.
She currently has about 180,000 in assets, which includes her house. She will receive around 2,000 a month from SS, disability, etc. I figured that would help alleviate the cost of a nicer facility, along with her assets being used until Medicaid could kick in.
I was under the impression that Medicaid would pay a portion of any nursing home/situation.
She currently has about 180,000 in assets, which includes her house. She will receive around 2,000 a month from SS, disability, etc. I figured that would help alleviate the cost of a nicer facility, along with her assets being used until Medicaid could kick in.
Posted on 2/9/19 at 7:05 pm to Dupont3
Bump
Posted on 2/10/19 at 10:05 am to Dupont3
You are not going to find a simple answer to your situation on a message board.
You need to see a professional who specializes in this fairly complicated area and provide them with all the details.
People sometimes try to get clever with trusts and stuff, which can be helpful in some situations, and leave themselves without access to funds to pay for care AND simultaneously ineligible for Medicaid because of their shenanigans. Tread carefully.
You need to see a professional who specializes in this fairly complicated area and provide them with all the details.
People sometimes try to get clever with trusts and stuff, which can be helpful in some situations, and leave themselves without access to funds to pay for care AND simultaneously ineligible for Medicaid because of their shenanigans. Tread carefully.
Posted on 2/10/19 at 1:51 pm to Twenty 49
We are going to meet with an elder law attorney this week and go from there.
Posted on 2/11/19 at 9:08 pm to Dupont3
No... She is allowed to use her home as long as necessary, but must otherwise be considered indigent.
Lot of caveats, but do yourself a favor and see a professional
Lot of caveats, but do yourself a favor and see a professional
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