“Doing Nothing” as a Solution to Medicaid Planning

As part of my initial conference (assume client is single) is a discussion of a client’s resources, income from resources, pension, social security, veteran’s benefits, etc.

I then compute the approximate annual income from resources and the other sources to compare to nursing home costs. If such income exceeds or approximates nursing home costs, my recommendation is that planning not be undertaken and that such income be used for the nursing home.

Of course, you then run the risk that the person is in the nursing home for a lengthy period of time and, therefore, there could be a substantial depreciation of assets. However, keeping in mind that the average stay in a nursing home is slightly more than two years, a prudent approach in such a case would be to do nothing.

However, it is extremely important that there be “access” to the assets, generally pursuant to a power of attorney. In this way, the monies can be used for the benefit of the individual, particularly with respect to nursing home costs.

This is just an approach to consider and should not be treated as a recommendation.




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 101