Planning Pitfalls: These Lesser-Known Factors Could Affect Your Medicaid Eligibility

The Red Wagon Estate Planning & Elder Law Show

Christine Oyler, Services Planning Coordinator at Bellomo & Associates, is the firm’s Medicaid team member. Since 2016, Christine has used her nursing experience and Medicaid knowledge to help clients better understand the Medicaid system and make the best choices for themselves and their families. As part of this work, she sits down with Jeff to discuss some of the lesser-known factors that can affect your asset protection strategy and Medicaid eligibility.

WHAT YOU NEED TO KNOW

(00:00) Episode introduction.

(03:15) A “529 account” helps people save for educational expenses. However, a 529 account could affect your eligibility for Medicaid.

(06:22) Funds in a “uniform transfer to minors account” are exempt from Medicaid eligibility even within the five-year lookback period.

(07:23) When filing a Medicaid application, estranged spouses must prove that they are living separate lives with separate finances. A hearing may be necessary.

(10:48) Divorcing and giving the “community” spouse 100% of assets to gain Medicaid eligibility is a red flag for possible fraud. Additionally, this scenario limits protection of the community spouse’s assets.

(14:20) When people get married and enter into a prenup to keep finances separate, the state can still make a claim on the resources of the community spouse. The same applies to postnuptial agreements.

(16:47) Some blended families have wills designed to keep inheritable resources separate for the “original” children. This does not protect the assets of the community spouse.

(19:05) Continuing care retirement communities (CCRCs) often have a “benevolent fund” available to pay for care if a person—who is not yet in skilled care—runs out of money. There are many factors to consider under this scenario.

(24:26) Having your assets in a trust would not necessarily disqualify you from entering a CCRC. But, at the least, you likely would need to have sufficient funds in your name alone to buy in. Estate planning options are available to manage this scenario.

(27:57) Typically, a benevolent fund contract will restrict the amount and type of gifting that is allowed while the contract is in force.

ABOUT BELLOMO & ASSOCIATES

Jeffrey R. Bellomo, the founder of Bellomo & Associates, is a licensed and certified elder law attorney with a master’s degree in taxation and a certificate in estate planning. He explains complex legal and financial topics in easy-to-understand language.

Bellomo & Associates is committed to providing education so that what happened to the Bellomo family doesn’t happen to your family. We conduct free workshops on estate planning, crisis planning, Medicaid planning, special needs planning, probate administration, and trust administration. Visit our website (https://bellomoassociates.com/) to learn more.

LINKS AND RESOURCES MENTIONED

Bellomo & Associates workshops:https://bellomoassociates.com/workshops/

• Life Care Planning
• The Three Secrets of Estate Planning
• Nuts & Bolts of Medicaid

For more information, call us at [phone].

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