Deposit in a Continuing Care Retirement Community

Under the current law, monies held as a deposit in a Continuing Care Retirement Community are treated as a resource. They are available for use in the facility, but prevent current Medicaid eligibility.

However, if the individual relocates to another nursing home, the deposit will be made available to such individual.

This opens up a planning opportunity since the monies returned from the deposit and other resources of the individual are now available for reverse half-a-loaf planning (see post 88).

Therefore, while such a living arrangement may be desirable, a decision must be made as to allow a parent to remain there or to do Medicaid planning by removing the funds and using the above-mentioned planning technique.

Of course, the viability of utilizing the reverse half-a-loaf question has been disallowed by the state. (Medicaid Communication 10-02, 10-06). My response to this denial is set forth in posting numbers 110 and 113.











Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© March 2010, Post 105