Ralph Robbins
Certified Financial Planner
Ralph S. Robbins, CFP©, is a licensed Certified Financial Planning Practitioner and an Accredited VA Claims Agent specializing in Eldercare Financial Planning. He works everyday helping families in crisis find creative ways to fund long-term care expenses and deal with family financial issues.
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Question
How do I explain mother-in-law's living situation on her tax forms?
I don't see where there is an income tax issue here unless there is a mortgage interest deduction you feel she may not be entitled to... I don't see where there is an income tax issue here unless there is a mortgage interest deduction you feel she may not be entitled to because she was not living there. Otherwise, the only other tax related issue in this scenario would be property tax exemption(s). see more
Question
Is there a minimum amount to set up an irrevocable trust fund?
There is no minimum as just about any asset can be titled in the name of a trust (such as a bank account with $100). The question I would... There is no minimum as just about any asset can be titled in the name of a trust (such as a bank account with $100). The question I would ask is why is the trust being established and by whom?
Assets transferred to an irrevocable trust are considered uncompensated gifts for Medicaid eligibility purposes subject to the famed "five year look back". see more
Assets transferred to an irrevocable trust are considered uncompensated gifts for Medicaid eligibility purposes subject to the famed "five year look back". see more
Question
My dad has Alzheimer's. I have POA and medical control, do I need guardianship?
Jeannegibbs gave you sound advice.
Question
Would an advance on a reverse mortgage heloc be counted as an asset for Medicaid?
Whether a reverse mortgage or home equity line of credit, the transfer, even if made directly to an institution, will be considered a gift... Whether a reverse mortgage or home equity line of credit, the transfer, even if made directly to an institution, will be considered a gift for Medicaid eligibility purposes. This is the case whenever fair market value compensation is not received in exchange for the transferred asset.
What may work in this circumstance is a promissory note. There is no prohibition against a prospective Medicaid applicant entering into a loan agreement as long as a fair market interest rate is being charged, there are no "balloon" payments, and there are no "forgiveness" clauses...essentially establishing what can be considered an "arms length transaction". With interest rates so low, this may be the way to go...exercise the institutional loan and then create the personal loan. (The loan should be made by the well spouse). see more
What may work in this circumstance is a promissory note. There is no prohibition against a prospective Medicaid applicant entering into a loan agreement as long as a fair market interest rate is being charged, there are no "balloon" payments, and there are no "forgiveness" clauses...essentially establishing what can be considered an "arms length transaction". With interest rates so low, this may be the way to go...exercise the institutional loan and then create the personal loan. (The loan should be made by the well spouse). see more
Question
My Grandmother gifted my fiance her property and he built a house. She is now ill, what will medicaid do?
How long ago was the gift made? If more than 5 years have passed then there will be no issue. If less than 5 years have elapsed, and... How long ago was the gift made? If more than 5 years have passed then there will be no issue.
If less than 5 years have elapsed, and assuming she nor you have the funds to pay for her care, you will have to qualify her for Medicaid.
Here are two possibilities for dealing with the asset transfer:
1. Obtain a hardship exemption for the property. This may be effective particularly if it is now your homestead. Technically, the "look back penalty" is to be imposed for transfers made "in contemplation of applying for benefits" and that is not the case here.
2. Quit-claim deed the property back to her and have her deem it her homestead property making the asset exempt. Then title the property in the name of a revocable living trust or quit-claim back to you (your husband) via an Enhanced Life Estate Deed. Both will allow the property to pass probate free back to you (your husband). If her assets are subject to probate at her demise they will also be subject to Medicaid Estate Recovery. New York does not seek non-probate assets. see more
If less than 5 years have elapsed, and assuming she nor you have the funds to pay for her care, you will have to qualify her for Medicaid.
Here are two possibilities for dealing with the asset transfer:
1. Obtain a hardship exemption for the property. This may be effective particularly if it is now your homestead. Technically, the "look back penalty" is to be imposed for transfers made "in contemplation of applying for benefits" and that is not the case here.
2. Quit-claim deed the property back to her and have her deem it her homestead property making the asset exempt. Then title the property in the name of a revocable living trust or quit-claim back to you (your husband) via an Enhanced Life Estate Deed. Both will allow the property to pass probate free back to you (your husband). If her assets are subject to probate at her demise they will also be subject to Medicaid Estate Recovery. New York does not seek non-probate assets. see more
Question
Nursing Home admin implied my mother-in-law may be discharged because of a balance rendered before Medicaid wa...
It may be wise to contact the Long-Term Care Ombudsman's office.... It may be wise to contact the Long-Term Care Ombudsman's office.
http://www.wvseniorservices.gov/StayingSafe/LongTermCareOmbudsmanProgram/tabid/81/Default.aspx
Explain the situation and I'm sure they will help. see more
http://www.wvseniorservices.gov/StayingSafe/LongTermCareOmbudsmanProgram/tabid/81/Default.aspx
Explain the situation and I'm sure they will help. see more
Question
Can Medicaid delay eligibility with a home in a trust?
GladImHere... A Revocable Living Trust (aka “Living Trust” or “Inter Vivos Trust”) is an estate planning tool that is frequently used as a... GladImHere...
A Revocable Living Trust (aka “Living Trust” or “Inter Vivos Trust”) is an estate planning tool that is frequently used as a Will substitute. The primary advantage is that the agreement provides for successor trustees to step in and manage the affairs of the settlor(s) (the person or persons who established the trust) in the event of incapacity as well as manage the settling of affairs and distribution of assets at death. Moreover, assets titled in the name of the trust are not subject to probate at the settlor’s demise.
The terms of a Revocable Living Trust agreement are, as the name of the trust implies, fully revocable during the life of the settlor(s). At the demise of the settlor(s) the terms of the trust become irrevocable and CANNOT be changed by the trustee or the beneficiaries except where discretion may be granted by the agreement.
Because the Settlor has full discretion over the assets titled in a Revocable Living Trust (can sell/gift/destroy) these assets are considered fully countable for Medicaid eligibility purposes unless otherwise subject to exemption.
The homestead residence is a case in point. Whether a home (presuming it otherwise qualifies as a homestead residence) titled in the name of a Revocable Living Trust will retain its homestead character will depend on the state you live in.
I see you live in Colorado in wish case a homestead residence titled in the name of a Revocable Living Trust will retain its homestead character and therefore will remain an exempt asset for Medicaid eligibility purposes (as long as “intent to return” to the home is expressed when applying).
Since your question is confusing as to whom the parties to the trust are, whether they are living or dead, or if living, if they are or are not mentally competent I cannot specifically answer your question with regard to the three children but I hope this helps. see more
A Revocable Living Trust (aka “Living Trust” or “Inter Vivos Trust”) is an estate planning tool that is frequently used as a Will substitute. The primary advantage is that the agreement provides for successor trustees to step in and manage the affairs of the settlor(s) (the person or persons who established the trust) in the event of incapacity as well as manage the settling of affairs and distribution of assets at death. Moreover, assets titled in the name of the trust are not subject to probate at the settlor’s demise.
The terms of a Revocable Living Trust agreement are, as the name of the trust implies, fully revocable during the life of the settlor(s). At the demise of the settlor(s) the terms of the trust become irrevocable and CANNOT be changed by the trustee or the beneficiaries except where discretion may be granted by the agreement.
Because the Settlor has full discretion over the assets titled in a Revocable Living Trust (can sell/gift/destroy) these assets are considered fully countable for Medicaid eligibility purposes unless otherwise subject to exemption.
The homestead residence is a case in point. Whether a home (presuming it otherwise qualifies as a homestead residence) titled in the name of a Revocable Living Trust will retain its homestead character will depend on the state you live in.
I see you live in Colorado in wish case a homestead residence titled in the name of a Revocable Living Trust will retain its homestead character and therefore will remain an exempt asset for Medicaid eligibility purposes (as long as “intent to return” to the home is expressed when applying).
Since your question is confusing as to whom the parties to the trust are, whether they are living or dead, or if living, if they are or are not mentally competent I cannot specifically answer your question with regard to the three children but I hope this helps. see more
Question
If you have an IRA, can Medicare access it if you're in a nursing home?
Deefer... I'm afraid your mom received poor advice. There were ways that the bulk of her assets, including IRA principal, could have... Deefer...
I'm afraid your mom received poor advice. There were ways that the bulk of her assets, including IRA principal, could have been preserved for her benefit while qualifying for Medicaid. I believe "spending down" is the worst advice simply because Medicaid beneficiaries have needs beyond those satisfied by Medicaid.
I say this only for the benefit of others who may read this. see more
I'm afraid your mom received poor advice. There were ways that the bulk of her assets, including IRA principal, could have been preserved for her benefit while qualifying for Medicaid. I believe "spending down" is the worst advice simply because Medicaid beneficiaries have needs beyond those satisfied by Medicaid.
I say this only for the benefit of others who may read this. see more
Question
If you have an IRA, can Medicare access it if you're in a nursing home?
SusieQ... I’m sure your question was about Medicaid, not Medicare and the answer depends on the state in which you live. It appears you... SusieQ...
I’m sure your question was about Medicaid, not Medicare and the answer depends on the state in which you live. It appears you are in California and the rule there is the same as in the other two largest retiree states: New York, and where I practice, Florida.
In these states, and others, the answer is that IRA principal is an exempt asset as long as the IRA is in distribution and the distribution is going towards “cost of care’ or “patient responsibility” if in a nursing home.
By law, an IRA owner must begin taking "Required Minimum Distributions" (RMD) by April 1 of the year after turning age 70 1/2. Chances are, then, that your loved one's IRA is already in distribution but perhaps not being distributed monthly which will be a requirement.
Although the Medicaid applicant may have been taking more than the required minimum prior to application it will make sense to reduce the distribution to the required minimum prior to applying since any residual remaining in the IRA at the demise of the Medicaid recipient is not required to be paid to the state but can, rather, be distributed to heirs.
Some states are not so generous with respect to the treatment of IRA’s and the solutions can be cumbersome and complicated so I will not address them here unless there is a request regarding a specific scenario in a specific state. see more
I’m sure your question was about Medicaid, not Medicare and the answer depends on the state in which you live. It appears you are in California and the rule there is the same as in the other two largest retiree states: New York, and where I practice, Florida.
In these states, and others, the answer is that IRA principal is an exempt asset as long as the IRA is in distribution and the distribution is going towards “cost of care’ or “patient responsibility” if in a nursing home.
By law, an IRA owner must begin taking "Required Minimum Distributions" (RMD) by April 1 of the year after turning age 70 1/2. Chances are, then, that your loved one's IRA is already in distribution but perhaps not being distributed monthly which will be a requirement.
Although the Medicaid applicant may have been taking more than the required minimum prior to application it will make sense to reduce the distribution to the required minimum prior to applying since any residual remaining in the IRA at the demise of the Medicaid recipient is not required to be paid to the state but can, rather, be distributed to heirs.
Some states are not so generous with respect to the treatment of IRA’s and the solutions can be cumbersome and complicated so I will not address them here unless there is a request regarding a specific scenario in a specific state. see more
Question
Should I sign the payment arrangements on the admissions packet for the nursing home that my dad just went int...
You should not sign any document that will make you financially liable for your father's expenses.
Question
If a grantor signs a quit claim deed making the property into a living trust, can the grantor change to whom s...
Your question is not clear. Who put the property in a living trust? Who's living trust is it? Who is the current homeowner? ... Your question is not clear. Who put the property in a living trust? Who's living trust is it? Who is the current homeowner? I'll try to help if you can be a bit more detailed. see more
Question
My mother with dementia was recently granted Aid and Attendance benefits. Can this money be counted by Medica...
Reverseroles…. You are absolutely correct that the Aid and Attendance benefit your mother receives is to assist her with “unreimbursed... Reverseroles….
You are absolutely correct that the Aid and Attendance benefit your mother receives is to assist her with “unreimbursed medical expenses” which may include the cost of home care delivered by professionals or others and is not considered income either by the IRS or Medicaid agencies.
The question above was with respect to qualifying for Medicaid which is governed by different rules and regulations than VA benefits.
Technically, the Aid and Attendance benefit consists of a “Basic” pension on top of which the “Aid and Attendance” is added. When it comes to meeting Medicaid’s income requirements the “Basic” portion, which is not deemed to be reimbursement for medical expenses, is counted as income. The portion deemed as “Aid and Attendance” is not.
Most states have Medicaid programs (called “waiver programs”) that may assist a beneficiary with long-term care at home. I would strongly urge you to contact the agency that handles Medicaid in your state or your local Area Agency on Aging to learn what may available to assist your mom.
She can receive both VA assistance and Medicaid benefits simultaneously. Whoever told you otherwise was mistaken.
Receiving misinformation from employees at government agencies is not all unusual, and this is not to denigrate the hard work and dedication of most. The fact is that the rules and regulations are complex and confusing. When there is doubt go up the managerial chain of the organization your dealing with or seek professional advice. see more
You are absolutely correct that the Aid and Attendance benefit your mother receives is to assist her with “unreimbursed medical expenses” which may include the cost of home care delivered by professionals or others and is not considered income either by the IRS or Medicaid agencies.
The question above was with respect to qualifying for Medicaid which is governed by different rules and regulations than VA benefits.
Technically, the Aid and Attendance benefit consists of a “Basic” pension on top of which the “Aid and Attendance” is added. When it comes to meeting Medicaid’s income requirements the “Basic” portion, which is not deemed to be reimbursement for medical expenses, is counted as income. The portion deemed as “Aid and Attendance” is not.
Most states have Medicaid programs (called “waiver programs”) that may assist a beneficiary with long-term care at home. I would strongly urge you to contact the agency that handles Medicaid in your state or your local Area Agency on Aging to learn what may available to assist your mom.
She can receive both VA assistance and Medicaid benefits simultaneously. Whoever told you otherwise was mistaken.
Receiving misinformation from employees at government agencies is not all unusual, and this is not to denigrate the hard work and dedication of most. The fact is that the rules and regulations are complex and confusing. When there is doubt go up the managerial chain of the organization your dealing with or seek professional advice. see more
Question
My mother with dementia was recently granted Aid and Attendance benefits. Can this money be counted by Medica...
Taurus… It is important to keep in mind which agency is responsible for evaluating and determining eligibility and qualification... Taurus…
It is important to keep in mind which agency is responsible for evaluating and determining eligibility and qualification requirements for each program.
When it comes to the Aid and Attendance Improved Pension the VA determines if the costs incurred by a care giver to the veteran are eligible expenses or not. Generally, the VA will accept as deductible expenses from gross income those of licensed agencies or registries as well as private individuals including family members living with the veteran as long as proper documentation is provided.
If the veteran qualifies for the benefit and then applies for Medicaid benefits the Medicaid agency will treat the VA benefit the same irrespective of who is delivering the care to the veteran. Quite simply, the Medicaid agency could care less who is delivering the care and it is, frankly, none of their business. The matter is between the veteran and the VA. see more
It is important to keep in mind which agency is responsible for evaluating and determining eligibility and qualification requirements for each program.
When it comes to the Aid and Attendance Improved Pension the VA determines if the costs incurred by a care giver to the veteran are eligible expenses or not. Generally, the VA will accept as deductible expenses from gross income those of licensed agencies or registries as well as private individuals including family members living with the veteran as long as proper documentation is provided.
If the veteran qualifies for the benefit and then applies for Medicaid benefits the Medicaid agency will treat the VA benefit the same irrespective of who is delivering the care to the veteran. Quite simply, the Medicaid agency could care less who is delivering the care and it is, frankly, none of their business. The matter is between the veteran and the VA. see more
Question
My mother with dementia was recently granted Aid and Attendance benefits. Can this money be counted by Medica...
ddv601... I am very surprised to hear of your experience. The treatment of the Housebound or Aid and Attendance portion of VA non-service... ddv601...
I am very surprised to hear of your experience. The treatment of the Housebound or Aid and Attendance portion of VA non-service connected pensions with regard to qualification for SSI related programs is found in Social Security regulations (https://secure.ssa.gov/poms.nsf/lnx/0500830308) and has been adopted by and applies to every state that I am familiar with.
I see that you are in Florida and since this is the state where I conduct the majority of my practice I can say without equivocation that neither the Housebound nor the Aid and Attendance portion of the VA Improved Pension is counted as income in determining Medicaid eligibility. (ACCESS Florida Policy Program Manual Sections 1840.0906 through 1840.0906.08)
In my experience a letter from the VA has never been required as the pension rates are published and the Department of Children and Families has direct computer access to the veteran’s benefit information.
Keep in mind we are talking about pension and NOT compensation which is indeed fully countable.
Now if the claimant is in a nursing home (as you state your father is) and receives Medicaid the VA pension benefit paid to the claimant will be reduced to $90 per month and will be deemed as an addition to his “Personal Needs Allowance” of $35 per month.
If your father’s Aid and Attendance benefit is being counted as income for Medicaid eligibility purposes there is something wrong and if this determination is causing him to not qualify for benefits you should request a review by the supervisor in the office that is handling his Medicaid application. see more
I am very surprised to hear of your experience. The treatment of the Housebound or Aid and Attendance portion of VA non-service connected pensions with regard to qualification for SSI related programs is found in Social Security regulations (https://secure.ssa.gov/poms.nsf/lnx/0500830308) and has been adopted by and applies to every state that I am familiar with.
I see that you are in Florida and since this is the state where I conduct the majority of my practice I can say without equivocation that neither the Housebound nor the Aid and Attendance portion of the VA Improved Pension is counted as income in determining Medicaid eligibility. (ACCESS Florida Policy Program Manual Sections 1840.0906 through 1840.0906.08)
In my experience a letter from the VA has never been required as the pension rates are published and the Department of Children and Families has direct computer access to the veteran’s benefit information.
Keep in mind we are talking about pension and NOT compensation which is indeed fully countable.
Now if the claimant is in a nursing home (as you state your father is) and receives Medicaid the VA pension benefit paid to the claimant will be reduced to $90 per month and will be deemed as an addition to his “Personal Needs Allowance” of $35 per month.
If your father’s Aid and Attendance benefit is being counted as income for Medicaid eligibility purposes there is something wrong and if this determination is causing him to not qualify for benefits you should request a review by the supervisor in the office that is handling his Medicaid application. see more
Question
Does anyone know a knowledgeable Veterans Aid and Attendance lawyer in SWFLA?
The information regarding qualification for VA Aid and Attendance Improved Pension can often indeed be confusing and conflicting. As a VA... The information regarding qualification for VA Aid and Attendance Improved Pension can often indeed be confusing and conflicting. As a VA Accredited Claims Agent I can assure you the following is accurate:
1. It is helpful to look at the income side of the equation first. There is no stipulated income level to qualify as there is with Medicaid. To be eligible for an award the veteran or surviving spouse’s Income for VA Purposes (IVAP) must be under the pension rate being sought.
To determine IVAP start with the veteran or surviving spouse’s gross household income (don’t forget to add back deductions that may be taken for insurances or taxes). From gross income the claimant is permitted to deduct Unreimbursed Medical Expenses (UME). UME may include medically related insurance premiums such as Medicare Part B premiums, Medicare Part D premiums, Medicare supplement premiums and long-term care insurance premiums.
Also permitted as deductions are physician and Rx co-pays or deductibles, medically related transportation expenses, durable medical equipment supplies, and ongoing over the counter remedies and supplies. Most importantly, the cost of home health care, provided by an agency, private provider, or even a family member, may be deductible as are the costs of care in an assisted living facility.
When discussing the application of a couple it is important to recognize that the claim is based on the need of the veteran, NOT the spouse. If the veteran does not need “…ongoing, regular, daily assistance to protect him/her from the hazards of his/her daily environment” (the overarching medical requirement) then the maximum award available will be that of the Basic pension NOT the improved Aid and Attendance pension. The expenses incurred as a result of the spouse’s need will be deductible from gross household income in determining IVAP, but the award itself is always based on the veteran’s need.
In 2013 this means that if the veteran does not meet medical criteria, and eligible expenses are not attributable to him/her, the maximum pension award for the couple will be $1,359 as opposed to the Improved Aid and Attendance pension of $2,053.
Once IVAP is determined, 5% of the applicable maximum pension award is deducted from IVAP to determine the net amount of UME that may be deducted from gross income.
Once the deductible is applied the result is compared to the dollar amount of the pension being sought. There will then be one of three results: No award, a partial award, or a full award.
Examples (expressed in months for convenience):
Couple (based on veteran receiving care)
Gross household income: $2,200
Unreimbursed Medical Expenses: $1,600
Maximum Aid and Attendance pension: $2,053
5% of Aid and Attendance max pension: $103
Deductible Unreimbursed Medical Expense: $1,497
Aid and Attendance Award: $2,053 - $1,497 = $703 (partial award)
Couple (based on veteran receiving care)
Gross household income: $2,200
Unreimbursed Medical Expenses: $2,500
Maximum Aid and Attendance pension = $2,053
5% of Aid and Attendance max pension: $103
Deductible Unreimbursed Medical Expense: $2,397
Aid and Attendance Award: $2,053 - $2,397 = under $0 = $2,053 (max. award)
2. With respect to the asset side of the equation there is, again, no stipulated asset level and a formulaic approach is used in determining eligibility. The VA considers a claimants “estate” everything owned except for the primary residence, automobile, and personal belongings. There are no “non-countable” assets are there are in the Medicaid rules (e.g., stipulations for IRA’s or income producing property) and the assets of both husband and wife are fully countable.
The calculation for an acceptable level of assets takes into account the dollar amount of the estate, the life expectancy of the veteran, and the unreimbursed medical expenses being claimed. The question is simply this:
If the estate is distributed over the lifetime of the veteran, will the estate be enough to satisfy the unreimbursed medical expenses being claimed? If the answer is yes, no award. If the answer is no, then an award may be granted.
There is no $50,000 asset limit for singles or $80,000 limit for couples. These numbers represent the asset level that beyond which if reflected on an application will cause the application to automatically be reviewed by a manager.
It is rare to see an application approved with such high asset level levels unless the claimant is relatively young or expenses are extraordinarily high.
If asset shifting in contemplation of applying for VA pension is being consider please keep in mind that VA pension and Medicaid are two separate and distinct programs with separate and distinct eligibility and qualification criteria. Planning for one set of benefits may disqualify an applicant for another set. When seeking advice be certain the advisor is familiar with how both programs operate. see more
1. It is helpful to look at the income side of the equation first. There is no stipulated income level to qualify as there is with Medicaid. To be eligible for an award the veteran or surviving spouse’s Income for VA Purposes (IVAP) must be under the pension rate being sought.
To determine IVAP start with the veteran or surviving spouse’s gross household income (don’t forget to add back deductions that may be taken for insurances or taxes). From gross income the claimant is permitted to deduct Unreimbursed Medical Expenses (UME). UME may include medically related insurance premiums such as Medicare Part B premiums, Medicare Part D premiums, Medicare supplement premiums and long-term care insurance premiums.
Also permitted as deductions are physician and Rx co-pays or deductibles, medically related transportation expenses, durable medical equipment supplies, and ongoing over the counter remedies and supplies. Most importantly, the cost of home health care, provided by an agency, private provider, or even a family member, may be deductible as are the costs of care in an assisted living facility.
When discussing the application of a couple it is important to recognize that the claim is based on the need of the veteran, NOT the spouse. If the veteran does not need “…ongoing, regular, daily assistance to protect him/her from the hazards of his/her daily environment” (the overarching medical requirement) then the maximum award available will be that of the Basic pension NOT the improved Aid and Attendance pension. The expenses incurred as a result of the spouse’s need will be deductible from gross household income in determining IVAP, but the award itself is always based on the veteran’s need.
In 2013 this means that if the veteran does not meet medical criteria, and eligible expenses are not attributable to him/her, the maximum pension award for the couple will be $1,359 as opposed to the Improved Aid and Attendance pension of $2,053.
Once IVAP is determined, 5% of the applicable maximum pension award is deducted from IVAP to determine the net amount of UME that may be deducted from gross income.
Once the deductible is applied the result is compared to the dollar amount of the pension being sought. There will then be one of three results: No award, a partial award, or a full award.
Examples (expressed in months for convenience):
Couple (based on veteran receiving care)
Gross household income: $2,200
Unreimbursed Medical Expenses: $1,600
Maximum Aid and Attendance pension: $2,053
5% of Aid and Attendance max pension: $103
Deductible Unreimbursed Medical Expense: $1,497
Aid and Attendance Award: $2,053 - $1,497 = $703 (partial award)
Couple (based on veteran receiving care)
Gross household income: $2,200
Unreimbursed Medical Expenses: $2,500
Maximum Aid and Attendance pension = $2,053
5% of Aid and Attendance max pension: $103
Deductible Unreimbursed Medical Expense: $2,397
Aid and Attendance Award: $2,053 - $2,397 = under $0 = $2,053 (max. award)
2. With respect to the asset side of the equation there is, again, no stipulated asset level and a formulaic approach is used in determining eligibility. The VA considers a claimants “estate” everything owned except for the primary residence, automobile, and personal belongings. There are no “non-countable” assets are there are in the Medicaid rules (e.g., stipulations for IRA’s or income producing property) and the assets of both husband and wife are fully countable.
The calculation for an acceptable level of assets takes into account the dollar amount of the estate, the life expectancy of the veteran, and the unreimbursed medical expenses being claimed. The question is simply this:
If the estate is distributed over the lifetime of the veteran, will the estate be enough to satisfy the unreimbursed medical expenses being claimed? If the answer is yes, no award. If the answer is no, then an award may be granted.
There is no $50,000 asset limit for singles or $80,000 limit for couples. These numbers represent the asset level that beyond which if reflected on an application will cause the application to automatically be reviewed by a manager.
It is rare to see an application approved with such high asset level levels unless the claimant is relatively young or expenses are extraordinarily high.
If asset shifting in contemplation of applying for VA pension is being consider please keep in mind that VA pension and Medicaid are two separate and distinct programs with separate and distinct eligibility and qualification criteria. Planning for one set of benefits may disqualify an applicant for another set. When seeking advice be certain the advisor is familiar with how both programs operate. see more
Question
Must all funds in joint accounts be disclosed to nursing home on application?
Any asset of which the applicant has any incidence of ownership must be disclosed. If it can be demonstrated that a portion of the value... Any asset of which the applicant has any incidence of ownership must be disclosed.
If it can be demonstrated that a portion of the value of a joint account was contributed by the joint holder then that portion may be excluded as a a countable asset. Otherwise, the full value of the joint asset will be attributed to the applicant. see more
If it can be demonstrated that a portion of the value of a joint account was contributed by the joint holder then that portion may be excluded as a a countable asset. Otherwise, the full value of the joint asset will be attributed to the applicant. see more
Question
My mother with dementia was recently granted Aid and Attendance benefits. Can this money be counted by Medica...
Only a portion of the Aid and Attendance benefit will be counted as income by Medicaid. Technically, there are three levels of non-service... Only a portion of the Aid and Attendance benefit will be counted as income by Medicaid.
Technically, there are three levels of non-service connected pension available: Basic, Housebound, and Aid and Attendance with Aid and Attendance offering the highest potential benefit.
Because all benefits above Basic are granted based on “unreimbursed medical expenses” incurred by the claimant it is presumed by Medicaid that benefits received above Basic are going to cost of care and are, therefore, NOT countable as income for Medicaid eligibility purposes.
Thus the only portion of the Aid and Attendance benefit received that is countable as income by Medicaid is the “Basic” amount. For 2013 the Basic benefit for a surviving spouse is $695.
If this income puts the Medicaid beneficiary over the Medicaid “income cap” for eligibility (which it looks like it will not in this case) an “Irrevocable Qualified Income Trust” can be established to maintain eligibility see more
Technically, there are three levels of non-service connected pension available: Basic, Housebound, and Aid and Attendance with Aid and Attendance offering the highest potential benefit.
Because all benefits above Basic are granted based on “unreimbursed medical expenses” incurred by the claimant it is presumed by Medicaid that benefits received above Basic are going to cost of care and are, therefore, NOT countable as income for Medicaid eligibility purposes.
Thus the only portion of the Aid and Attendance benefit received that is countable as income by Medicaid is the “Basic” amount. For 2013 the Basic benefit for a surviving spouse is $695.
If this income puts the Medicaid beneficiary over the Medicaid “income cap” for eligibility (which it looks like it will not in this case) an “Irrevocable Qualified Income Trust” can be established to maintain eligibility see more
Question
If I have a joint bank account with my mother can I move her funds to a new account in my name in case she mov...
mysweetcat... Isn't mom's Social Security going to the nursing home? I would be very surprised if it is not. All of mom's... mysweetcat...
Isn't mom's Social Security going to the nursing home? I would be very surprised if it is not. All of mom's income is supposed to go towards her "patient responsibility" which is determined by the Medicaid agency and is usually all of her income less a small amount for "personal needs".
As far as your sister is concerned going to the police is all you can do besides making sure she had no access to the checkbook in the future! see more
Isn't mom's Social Security going to the nursing home? I would be very surprised if it is not. All of mom's income is supposed to go towards her "patient responsibility" which is determined by the Medicaid agency and is usually all of her income less a small amount for "personal needs".
As far as your sister is concerned going to the police is all you can do besides making sure she had no access to the checkbook in the future! see more
Question
Can I claim the amount I pay to the Assisted Living facility for mom to cover the balance on my taxes without...
reindeermama is on the right track. If you are paying more than 50% of her support costs you may claim her as a dependent and deduct the... reindeermama is on the right track. If you are paying more than 50% of her support costs you may claim her as a dependent and deduct the costs as per the rules and regs. However in your question you asked if you could deduct expenses WITHOUT claiming her as a dependent. The answer is no. see more
How can a granddaughter get paid for care giving to her grandmother, without medicaid later penalizing and con...
In order to avoid Medicaid penalty, however, you must have a formal agreement in place. Known as a Personal Care Agreement or Personal Services Agreement you will essentially enter into a contract with your grandmother and become her employee.
The agreement should stipulate the rate of pay, the number of expected hours to be provided, the services being provided, and the term of the contract. It is also important that you keep a log of the hours and services being provided on a contemporaneous basis.
This contract can also be used as tool to move a lump sum in the event that grandmother needs to apply for Medicaid sooner rather than later. Rules allow for the contract to be satisfied in advance in one lump sum based on the variables mentioned above multiplied by her life expectancy.
This will be a taxable transaction to both you and your grandmother and some states actually require that the tax documentation be submitted as evidence of the legitimacy of the arrangement so you may wish to consult with a tax preparer as to what the employee/employer filing requirements are. see more