{"id":358,"date":"2017-10-31T21:43:44","date_gmt":"2017-10-31T21:43:44","guid":{"rendered":"https:\/\/eralawgroup.wordpress.com\/?p=358"},"modified":"2018-09-27T12:54:33","modified_gmt":"2018-09-27T12:54:33","slug":"tuesdaytips-medicaid-trick-or-treat","status":"publish","type":"post","link":"https:\/\/eralawgroup.com\/tuesdaytips-medicaid-trick-or-treat\/","title":{"rendered":"#TuesdayTips: Medicaid… Trick, or Treat?"},"content":{"rendered":"
By: Jessica L. Estes, Esq.<\/p>\n
Medicaid* can be a scary topic.\u00a0 Not only are there are a lot of myths about Medicaid<\/a>, but if you are considering applying for it, a crisis has occurred.\u00a0 Add to your emotional distress Medicaid\u2019s requirement that you provide five years\u2019 worth of bank statements, tax returns, and proof of expenditures, and likely, you are pulling your hair out.\u00a0 Do not despair!<\/p>\n Myth #1<\/u><\/strong>:\u00a0 Medicaid will take my house.\u00a0 <\/strong>FALSE!\u00a0 Medicaid will not take your house.\u00a0 If you are married, have a disabled child, or own the home jointly with another, the house will not count as an asset.\u00a0 Further, if you are married, Medicaid will require you to transfer ownership of the house to your spouse to preserve it for him\/her.\u00a0 Similarly, if you have a disabled child, Medicaid will allow you to transfer, without penalty, the home to a trust<\/a> for their benefit.\u00a0 In both cases, the home will be out of your name and protected for your spouse or disabled child, so when you pass away, Medicaid will not have a right to recover against it.<\/p>\n If you are single and own a home, Medicaid will not count it as an asset if you intend to return home.\u00a0 The intent to return home is a subjective one, meaning, that regardless of whether you realistically can or do return home, it is your own intent that is determinative.\u00a0 Although Medicaid may lien the property, if you return home prior to your death, that lien will extinguish.\u00a0 And, even though Medicaid will have a claim against your estate after you pass, it will only be valid if Medicaid files their claim within specified time limits, which it often misses.<\/p>\n Myth #2<\/u><\/strong>:\u00a0 If you transfer assets, you must wait 60 months to qualify.\u00a0 <\/strong>FALSE!\u00a0 If you transfer assets for less than their fair market value (i.e. you give them away), then Medicaid will impose a penalty.\u00a0 The penalty is not a monetary penalty, but rather, a period during which Medicaid will not pay benefits on your behalf.\u00a0 Contrary to popular opinion, Medicaid does not require the person who received the gift to give it back.<\/p>\n