Medicaid planning

[Anonymous]

MIL’s qualifies but she has about $70k of assets (her lifetime savings). Whom should we consult on how to protect/spend down: elder care lawyer or financial advisor? TIA

[Anonymous]

*her income qualifies for medicaid

[Anonymous]

The look-back period is 5 years. You might be too late.

[Anonymous]

Have to spend it.

[Anonymous]

She owns a condo together with DH (both names in the deed) with outstanding mortgage. Would paying off the mortgage count as spending? Is she only allowed to pay off half of the mortgage and DH would have to pay off another half? I guess the main question is which are the legit ways to spend the money? New territory for us and I was wondering whom should we consult? Elder law or financial advisor? (OP)

[Anonymous]

Anonymous wrote:She owns a condo together with DH (both names in the deed) with outstanding mortgage. Would paying off the mortgage count as spending? Is she only allowed to pay off half of the mortgage and DH would have to pay off another half? I guess the main question is which are the legit ways to spend the money? New territory for us and I was wondering whom should we consult? Elder law or financial advisor? (OP)

Sure, she can dump all of her money into the home. And assuming DH lives there, it won't impact her immediate medicaid eligibility. But the state will recover that money from the value of the home after the surviving spouse dies.

[Anonymous]

Consult an attorney affiliated with the National Academy of Elder Law Attorneys. Do not crowdsource, especially here. This stuff is not for amateurs or dabblers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:She owns a condo together with DH (both names in the deed) with outstanding mortgage. Would paying off the mortgage count as spending? Is she only allowed to pay off half of the mortgage and DH would have to pay off another half? I guess the main question is which are the legit ways to spend the money? New territory for us and I was wondering whom should we consult? Elder law or financial advisor? (OP)

Sure, she can dump all of her money into the home. And assuming DH lives there, it won't impact her immediate medicaid eligibility. But the state will recover that money from the value of the home after the surviving spouse dies.

Thanks for your reply!

1) DH does not live there
2) She is a widow

[Anonymous]

Anonymous wrote:Consult an attorney affiliated with the National Academy of Elder Law Attorneys. Do not crowdsource, especially here. This stuff is not for amateurs or dabblers.

That was exactly my question: whom to consult. Thank you! I will look for this type of attorney.

[Anonymous]

Republicans are about to gut Medicaid in next two months there won’t be Medicaid.

Do none of you read their plans they write it down

[Anonymous]

Anonymous wrote:She owns a condo together with DH (both names in the deed) with outstanding mortgage. Would paying off the mortgage count as spending? Is she only allowed to pay off half of the mortgage and DH would have to pay off another half? I guess the main question is which are the legit ways to spend the money? New territory for us and I was wondering whom should we consult? Elder law or financial advisor? (OP)

Talk to long-term care Medicaid. It will get complicated if the husband owns half but spends it down. There are specific things. Get her lot of clothing, bedding, etc for the nursing home, prepay for her funeral, etc. You don't need an attorney. The rules are also online.

[Anonymous]

Anonymous wrote:Republicans are about to gut Medicaid in next two months there won’t be Medicaid.

Do none of you read their plans they write it down

She's talking about long term care medicaid, which is a different program and run by each state.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Consult an attorney affiliated with the National Academy of Elder Law Attorneys. Do not crowdsource, especially here. This stuff is not for amateurs or dabblers.

That was exactly my question: whom to consult. Thank you! I will look for this type of attorney.

I agree, attorney is better than a financial planner. My parents' financial planner gave them bad advice. It's just not what they usually deal with, and they didn't know what they didn't know.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Republicans are about to gut Medicaid in next two months there won’t be Medicaid.

Do none of you read their plans they write it down

She's talking about long term care medicaid, which is a different program and run by each state.

Medicaid is a joint federal-state program. At least 50% of Medicaid funding in each state is federal dollars. Poorer states get higher matches. The federal government absolutely could gut Medicaid if it wanted to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:She owns a condo together with DH (both names in the deed) with outstanding mortgage. Would paying off the mortgage count as spending? Is she only allowed to pay off half of the mortgage and DH would have to pay off another half? I guess the main question is which are the legit ways to spend the money? New territory for us and I was wondering whom should we consult? Elder law or financial advisor? (OP)

Sure, she can dump all of her money into the home. And assuming DH lives there, it won't impact her immediate medicaid eligibility. But the state will recover that money from the value of the home after the surviving spouse dies.

I'm assuming DH is OP husband. That's where it gets tricky as they will put a lien on the house.