Inaccessible Resources

Inaccessible Resources

Inaccessible resources (see Post 35) are treated as excludable resources for Medicaid eligibility purposes (N.J.A.C. 10:71-4.4(b)6).

The theory is that a countable resource is only such that can be converted to monies to pay nursing home costs.

Post 35 discusses in detail that a co-owner of real estate renders the real estate inaccessible if the co-owner (not the applicant) refuses to liquidate.

Similarly, the same regulation treats property in probate as an inaccessible resource. The effect of inheritance by the community spouse (Post 27) and the effect of inheritance by a Medicaid recipient (Post 28) discuss this topic in detail. Basically, the theory is that if an estate has not been administered and, therefore, not distributed, the inheritance only becomes a resource upon distribution. If distribution is delayed, the Internal Revenue Service for estate income tax purposes treats the estate as “closed.” I have not seen Medicaid take this position although it would make sense that an estate cannot be held “in probate” for an inordinate amount of time.

The relevant regulation (N.J.A.C. 10:71-4.4(b)6) treats as inaccessible “the value of resources which are not accessible to the individual through no fault of his/her own.” Therefore, the above are merely examples and the possibilities for inaccessible resources are infinite.

For example, small pieces of real estate, which have no value due to location and zoning are treated as inaccessible in my experience. Similarly, assets that are to be received in the future, such as royalties, would have a similar status.

Monies owed to a community spouse, but not paid because the employer of the spouse is having financial problems, in today’s environment would be a poignant example of an inaccessible resource for purposes of the community spouse resource allowance.

On the other hand, resources available only if a penalty is incurred, are treated as available resources. An example of such a resource would be an annuity subject to penalty if distributed.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.


© July 2009, Post 48