Medicaid Planning and Estate Planning
An estate plan can be a valuable tool when Medicaid planning is needed for a married couple. As I have explained in prior newsletters, the community spouse resource allowance is calculated based on the amount of assets held by the couple when one of them needs nursing home care.
Generally, the more assets the couple is holding on the date they enter the nursing home, the more the community spouse may keep. The couple may be able to maximize their assets if their residence has been conveyed to a revocable trust. While their residence is generally not a counted asset, all assets in a revocable trust are counted. After a spouse enters a nursing home, the property is conveyed from the trust to the community spouse and is no longer a counted asset. This transferring of the property allows the value of the home to be included in calculating the couple’s assets. This could be a significant increase in the community spouse’s resource allowance.
It is important, if nursing home placement is anticipated, that clients discuss options for increasing their assets prior to the date of nursing home admission. Being able to increase their assets allows the community spouse to increase the assets they may keep.
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 web site for any updates to the newsletter and additional information regarding elder law. This letter, and the information on our web site, is intended to be 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.
