Baseline Date” - Assets Declaration
Dear Colleague:
As I have indicated in my earlier Newsletters, Medicaid planning is important for married couples when one spouse needs long-term nursing home care. The first step in Medicaid planning for couples is determining the "baseline date." This baseline date is used in calculating the community spouse resource allowance and the look-back period used to determine any divestment penalties.
The "baseline date," as defined by the Department of Human Services, is the first date that the person is a Medicaid applicant, and in long-term care. Long-term care for Medicaid purposes is defined as, a stay at the hospital or long-term care facility for 30 consecutive days or more. It is important for couples to realize that this baseline date does not change if Medicaid is denied or canceled, or the patient leaves long term care or the hospital and returns home.
The initial form filed for a married couple is the "Assets Declaration." This form requires the values of all assets owned by the couple at the time of the baseline date. Obtaining these values becomes difficult for couples who choose to private pay in the beginning and then need Medicaid assistance some time later. If they have paid for several years, they will need to obtain values from the beginning "baseline date." Also, if a spouse needs nursing home care for physical therapy immediately following a hospital stay, and their care is for 30 consecutive days, their baseline date has also been established.
It is important that clients be informed of the need to retain information regarding their assets once the "baseline date" has been established. This baseline date will affect all Medicaid planning that is done on their behalf.
Smith Bovill, P.C. counsels clients on elder law and Medicaid planning issues regularly as part of its estate planning, probate, and trust administration practice. This letter, as well as all prior letters, are posted on our website at www.smithbovill.com. Please check our website for any updates to this newsletter and additional information regarding elder law. This letter, and the information on our website, is intended for informational purposes only. As a result of the constantly changing laws in the Medicaid area, the information provided may change. We would be pleased to discuss this, or any other Medicaid or elder law issues, in more detail.
SMITH BOVILL, P.C.
SHARON A. BURGESS
