Planning for Medicaid for a Single or Widowed Person in a Nursing Home
Posted on April 4, 2022 by shieldsandboris
It's a common scenario: one spouse needs to go into a nursing home while the other one needs to support themselves at home. The couple needs Medicaid assistance to pay for this expensive care. The "community spouse" has options to shield their assets from being used to pay for their spouse's expensive nursing home care.
However, what is someone going into a nursing home is widowed or was never married. When there is no spouse to give funds under the community spouse exceptions, can anything be done to preserve these assets?
Exempt Transfers
The first option is for the client applying or planning for Medicaid to look into making exempted transfers. Exempt transfers are assets or funds that may be given away during the usual five-year "look-back" without penalty. Exemptions may apply in a few situations:
- Special Needs Gifts or Trusts
If the single or widowed person applying for Medicaid has a disabled family member, they may give funds or put funds into a trust for someone who is disabled. Gifts and transfers for people with special needs would not disqualify the applicant for benefits. However, special needs planning is not a DIY project, and should only be handled by an attorney who is experienced with such matters. Otherwise, you could end up ineligible because of improper gifts.
- Transferring a House to a Caregiver Child
One other common example would be the transfer of home ownership to a child who is or has been primarily responsible for the applicants care. If an adult child steps up to care for mom or dad in their golden years, the law allows them to receive compensation in the gift of a home without penalizing the elder needing Medicaid covered nursing home care.
- Purchase of Exempt Assets
Some assets don’t count against you during the lookback period. Purchasing exempt assets is one of the many benefits of pre-planning the dispensation of your estate, or your funeral. A well thought out plan by an elder law attorney may include the purchase of irrevocable burial reserves, certain medical equipment, or in some cases even a qualifying vehicle.
The most important thing to remember is that Medicaid planning is NOT something to take on alone. If you’re single or widowed and would like to protect your assets before applying for Medicaid coverage down the road, we can help. We specialize in educating and helping you protect what you have for the people you love the most. Contact us to learn more about how we can help you and your family.
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