Winter, 2007
Re: Medicaid Planning - Community Spouse Planning After Medicaid Approval
Dear Colleague:
In the process of applying for Medicaid for a nursing home spouse, focus is on the needs, requirements, and estate plan of the institutionalized spouse. Upon approval of the Medicaid Application, it is important to then change the focus to the needs and estate plan of the Community Spouse.
While the income of both spouses continue to be reviewed annually, the assets of the Community Spouse are not. The institutionalized spouse, over the first year, needs to be removed as a joint owner on all assets retained by the Community Spouse.
It is equally important not to overlook the possible death of the Community Spouse before the institutionalized spouse. The assets in their estate could result in the institutionalized spouse being ineligible for Medicaid. The estate plan of the Community Spouse should be reviewed, and the use of a Special Needs Trust for the benefit of the institutionalized spouse should be discussed. This Trust could allow the assets to be preserved for distribution to heirs, but yet be available to supplement the needs of the institutionalized spouse. Additionally, their Durable Power of Attorney and Healthcare Power of Attorney should be reviewed and updated. It is important that these documents provide for an appropriate agent to act if they should become incapacitated.
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.
SHARON A. BURGESS
SMITH BOVILL, P.C
