Estate planning and elder law attorney Dennis Toman, founder of The Elderlaw Firm in Greensboro, NC puts the record straight on misconceptions wrapped around Medicaid spend down and protecting assets from Nursing Home Costs. For more information please visit https://www.elderlawfirm.com
Greensboro, NC, United States - March 30, 2021 /MM-REB/ —
Greensboro Attorney Dennis Toman has taken time out from his busy schedule to put the record straight on misconceptions wrapped around Medicaid and how it affects you personally.
For more information please visit https://www.elderlawfirm.com
The Elderlaw Firm attorney said: “There are many myths that I frequently hear about Medicaid from clients, and it is time these myths be dispelled, so they have a better understanding of the topic.”
One of the biggest misunderstandings is that a person has to dispose of their assets to claim Medicaid. “This is not true. Individuals and married couples can own some property and still qualify for Medicaid,” he countered.
Exemptions include having a personal property, household furnishing, one vehicle, burial plots, pre-paid funerals, life estates in real property, trade or business property essential to self-support, and assets that can’t be converted to cash.
The family residence is also exempt for married couples if the healthy spouse is still living there. For a single individual, his or her residence may be exempt for a period.
Toman said that while transfers of assets between spouses are exempt, transfers to persons other than spouses usually could cause the donor to penalties to periods of ineligibility for Medicaid. “So, the more money or property is given away, the longer a person will be ineligible for Medicaid.”
Medicaid will assess what gifts have been made in the previous five years before application, and if a transfer is found, then divestment penalties may be imposed.
However, because of the subject’s complexity and rule changes, he advised people to consult an elder law attorney for further advice.
He dismissed several myths, including spending down assets on medical or nursing home bills. Toman said: “One reason nursing homes may want clients to believe this myth is because the private pay rates for nursing home residency are more than the Medicaid rates.”
The best advice, again, is to seek an experienced Elder Law attorney to understand what is right. He added: “People should remember that it’s never too late to start Medicaid Planning. If planning was not done before the person entered a nursing home, assets might still be protected.”
He further dismissed claims that a person can be eligible for Medicaid by putting their money in their spouse’s name or that a person can keep all their property when a spouse gets Medicaid.
“When a married person applies for Medicaid, the assets of both spouses are considered. If the non-applicant spouse does not provide information about his or her assets, then the Medicaid application can be denied,” he warned.
Other myths that he was quick to shoot down included living trusts, asset disclosure and
financial thresholds that may or may not affect Medicaid applications.
Toman commented: “Assets owned by a living trust are counted when determining financial eligibility and are vulnerable to nursing homes costs. However, other types of trusts may be used to protect assets.
“As for thresholds, a federal gift tax rule permits persons to give up to $15,000 per year per donee without filing a federal gift tax return. Gifts made as part of Medicaid planning may well exceed the $15,000 per year per donee limit, and a gift tax return may have to be filed.”
He advised that a wrongly held belief that you don’t have to disclose assets to Medicaid could result in an applicant facing criminal penalties for failure to disclose all assets. “All assets have to be disclosed, including savings bonds which do not produce current income.”
Toman said it was untrue that all a spouse’s income must be used to pay for nursing home care. “The institutionalized spouse is entitled to $30 per month on a personal needs allowance, and they can also pay for medical expenses not covered by Medicaid, including health insurance premiums for Medicare and private health insurance.”
He also advised a person who enters a nursing home as a private pay resident has to wait until a Medicaid bed became available to qualify for the aid.
Because of the complexity and scale of topics, Toman said anyone with concerns about Medicaid should consult an Elder Law attorney.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Dennis Toman
Email: Send Email
Organization: The Elderlaw Firm
Address: 403 W Fisher Ave, Greensboro, NC 27401
Phone: 336-378-1122
Website: https://www.elderlawfirm.com
Source: MM-REB
Release ID: 89002423
