This page is designed to address just a few of the most common misconceptions about being able to protect monies when a spouse or loved one enters into a Nursing Home…
Q. If a loved one is already in a nursing home or is about to enter one the “5 year look back” period will prevent any protecting or gifting of assets ?
A. This is absolutely false and is based on a misunderstanding of how the “5 year look back” is applied. Significant monies can still be protected for a spouse OR gifted to the children within the 5 year look back period.
Q. What is a Medicaid Asset Protection Plan ?
A. A Medicaid Asset Protection Plan is a plan by which there is a coordination of using exempt assets, Trusts and or other strategies to protect far more money than would normally be protected. This ensures that either the spouse at home is protected financially or protection of the “Nest Egg“ of the resident for the children or other family members.
Q. There is a limitation on gifting by the IRS, ( Currently $15,000.00 per year ) which will prevent the gifting of more monies to family members ?
A. This is false. Depending on what the family assets are gifts of hundreds of thousands of dollars can be made ( and within the 5 year look back period. )
Q. Will the Financial Power of Attorney I already have allow the person I appointed to handle whatever needs done for Medicaid planning and protecting Monies ?
A. In many cases, a Financial Power of Attorney, especially one done years ago, may NOT have all the necessary Powers that are required to allow another person to enact an Asset Protection Plan for a loved one. It MAY be necessary to have a new one prepared AND signed while the individual still has the mental and physical capacity to do so.
Q. Is giving my house to my children now is a good idea to protect it from the cost of a Nursing Home?
A. Quite simply this can be one of the biggest mistakes you can make.
Q. I have read that prepaying for Funerals is exempt from Medicaid and want to do that now before a family member enters a Nursing Home ?
A. Until a family member actually enters a nursing home, and is there for at least 30 days, the Medicaid “Snapshot” will not have occurred and therefore any expenditures on pre-need funerals will not only not count towards spend down, but will actually reduce the amount of money which can be protected.
Q. Once I have my spouse on Medicaid all my worries are over.
A. No, once the spouse is on Medicaid we must ensure his or her name is removed from the title to the home, and other assets, to prevent the state of Ohio from placing a lien on assets in the future in an attempt to recover some of the monies expended by Medicaid.
Q. When should my parents stop driving?
A. This is a decision best based on the family’s experience and in consult with the individual’s doctor. It is much easier for the family if the Doctor is the one who says the individual cannot drive anymore rather than family members.