| As a lawyer, my clients often share rumors they hear | | | | and the Medicaid applicant cannot be the trustee), they |
| circulating "in the streets" about all types of legal issues. | | | | should qualify for Medicaid. |
| I give them credit for bringing those rumors to me, | | | | It is in the worst-case scenario - when a senior fails to |
| because it gives me a chance to set them straight and | | | | plan at all, or what we in the industry call "the crisis |
| it gives them a chance to get the right advice and do | | | | Medicaid case" - that troubles arise. And this is where |
| the right thing. Because my practice involves elder law, | | | | those rumors abound. Because Medicaid looks back |
| the most frequent rumors I hear involve Medicaid. | | | | five years into the individual's financial history to |
| They are also the most frustrating. I'm amazed at the | | | | determine what they own(ed) and where it went, any |
| misinformation that circulates so recklessly. | | | | transfers of their assets into another person's name |
| The biggest Medicaid rumor my clients have shared | | | | without adequate compensation for the transfer will |
| with me involves what to do if a parent suddenly | | | | earn the Medicaid applicant a penalty period, which |
| becomes gravely ill, they do not have long-term care | | | | means they will not qualify for coverage for a certain |
| insurance, they have not done advance Medicaid | | | | period of time, based on an established formula. |
| planning, and they need Medicaid to pay for permanent | | | | The worst thing a child can do is transfer their parent's |
| nursing home care. More than one client has told me | | | | assets out of the parent's name thinking Medicaid |
| that friends and acquaintances have advised them to | | | | won't know, or not report all assets thinking Medicaid |
| put all of their parent's assets in their own name | | | | won't find them - both of which are tantamount to |
| because then Medicaid will see that they don't own | | | | defrauding Medicaid and could subject that person to |
| anything and they will be able to qualify for Medicaid | | | | criminal charges. (Different rules apply to spouses.) The |
| right away. | | | | fact is, Medicaid does a thorough review of every |
| WRONG! | | | | applicant's financial background, referencing and |
| Not only wrong, but rife with problems that could | | | | cross-referencing documents, checking all financial |
| subject those in need and their families to penalties, | | | | transactions, bank accounts, and other assets, and will |
| disqualification or, worse, criminal charges. | | | | determine if money has been transferred. By the time |
| Whether an infirm senior citizen will immediately qualify | | | | they find out, it will be too late for the senior to do |
| for Medicaid to pay for nursing home care depends on | | | | anything to reverse those transfers and they will be |
| whether they did advance Medicaid planning or | | | | disqualified from receiving Medicaid benefits for at |
| whether their current financial status qualifies them at | | | | least a period of time. |
| the outset. The truly destitute should not have | | | | Congress has authorized several methods by which |
| problems qualifying. It is the lower middle class - those | | | | even "crisis" cases can shield some of their assets. |
| with modest assets that they are trying not to lose | | | | Some examples include purchasing an irrevocable |
| entirely, especially if they have a well spouse or | | | | funeral trust, investing in certain improvements in the |
| children -- who face a more challenging task to qualify. | | | | home, making gifts with promissory note paybacks, |
| Congress has created methods by which those who | | | | and entering into personal services contracts with |
| are not destitute but not rich can attempt to shield | | | | family members. The only way to know if you or your |
| some or all of their assets in order to qualify. In the | | | | loved one can shield some or all of their assets is by |
| best-case scenario, someone who plans in advance | | | | consulting an elder lawyer who specializes in Medicaid |
| can create a Medicaid-qualifying trust, transfer all their | | | | planning. |
| assets into the trust and wait out the five-year | | | | As my father used to say, "Believe half of what you |
| "lookback" period. When the individual can show they | | | | see and none of what you hear". This is a good policy |
| haven't owned any assets for at least five years | | | | when it comes to Medicaid rumors. Get the right |
| (because the trustee of the trust owns their property, | | | | advice so you can get the best for your loved ones. |