Medicaid Planning and Division of Assets
Overland Park Medicaid planning lawyers guide couples through the complicated process of qualifying one spouse for Medicaid coverage
Due to modern advancements in medicine and technology, people are living longer and are requiring more time in specialized long-term care nursing homes. The average cost of nursing home care range between $5,000 and $8,000 per month and can often deplete a couples’ entire life savings and assets in just a few years. Because of this, Congress enacted spousal impoverishment provisions to aide in protecting one spouse from becoming impoverished because the other spouse requires costly nursing home care. Proper Medicaid planning requires a thorough understanding of the federal spousal impoverishment guidelines and the individual state laws within these guidelines. The Overland Park Medicaid planning attorneys at Stockton & Kandt, LLC. are respected as trusted advisors through every stage of our clients’ lives.
Spousal impoverishment law
The spousal impoverishment law, also referred to as division of assets, is designed to protect the spouse who does not need nursing home care, referred to as the “community spouse”, from becoming impoverished in order to pay for the costs of the spouse who needs to live in a nursing home, referred to as the “institutionalized spouse”. Spousal impoverishment laws are met by allowing the spouses to divide their assets and income, setting aside some specific assets and income for the community spouse. Any income and assets remaining after the non-countable exempt resources are divided for the community spouse must be spent-down to a value of $2,000 or less in order for the institutionalized spouse to qualify for Medicaid.
What assets can I keep if my spouse becomes eligible for Medicaid?
Understanding which assets are protected by the division of assets for the at-home spouse is crucial in correctly determining eligibility for the other spouse’s application for Medicaid. In simplest terms, any assets other than excluded assets are counted towards a couples’ countable resources. While each state determines which assets are exempt, the most common non-countable resources include:
- The couples’ primary residence home
- Household goods, personal items, and keepsakes
- One automobile per household
- Life insurance policies with a face value of $1,500 or less
- Funeral plans with certain limits
- Pension plans with certain limits
- One burial plot, casket, etc. per spouse
The at-home spouse is also allowed to keep the first $25,284 of the total non-exempt resources or one-half of the total non-exempt resources owned at the time their spouse entered the nursing home. The rules regarding each resource vary by state so it is best to work with a knowledgeable Medicaid planning attorney to protect your rights and assets for the future.
How do I apply for Medicaid assistance using the spousal impoverishment law?
The Medicaid eligibility and application process are both complicated and constantly changing. It is very common for people to receive outdated or incorrect information from family, friends, nursing home staff, and even Medicaid staff about the program’s application process. When applying for Medicaid, also known as KanCare in Kansas, you will be required to list all of the income and assets owned by you and your spouse. The KanCare worker assigned to your case will be responsible for determining which resources are protected under the division of assets provisions. It is best to work with a skilled elder law attorney who is well-versed in the most up to date Medicaid eligibility laws and application process to guide you through the process and to be available to aide you in an appeal if necessary.
Trusted Kansas Medicaid planning lawyers guide our clients through the difficult and confusing Medicaid eligibility and application process
The best time to prepare for unexpected medical costs is before you need them. While you may not believe you need Medicaid coverage today, no one knows what tomorrow holds. The compassionate Overland Park Medicaid attorneys at Stockton & Kandt, LLC. have the experience necessary to be your trusted advisors through every season and change of life. To schedule a confidential appointment with one of our trusted Medicaid planning advisors call us at 913-856-2828 or contact us online today.