Medicaid Planning for Residents

Suppose a husband and wife own a residence and one enters a nursing home. There are several possibilities regarding Medicaid planning. Firstly, the home is an exempt resource when one spouse enters a nursing home, as indicated in Post 11. If the home is transferred to the community spouse, and is sold or gifted by the community spouse after the applicant receives Medicaid, the home is protected.

Assume community spouse wants to reside in a home, but not the primary residence that currently exists. If the primary residence is sold, a second residence purchased within three months is exempt to the extent of the proceeds of sale of the first residence - see N.J.A.C. 10:71-4.4(b)8.ii.

Another possibility is to sell the residence and the community spouse move into an apartment. At the first day of the first month of sale, the community spouse resource allowance would apply to the community spouse and once the spenddown requirements are met, eligibility would be attained.

For a single person entering a nursing home, the house is exempt until sold for such period as allowed by the County Board. The County Boards vary on the time allowed. The balance of the proceeds would be subject to the spenddown process.

Finally, if a husband and wife have cash and live in an apartment and one enters a nursing home, purchase of a home by the community spouse would protect the cash and would be an exempt resource. Also, the community spouse resource allowance would enter into the picture.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© November 2010, Post 123