Blog Archives

529 Plans and Medicaid (Part 2) #Medicaid

            Last week I was telling you about the problem 529 plans pose for Medicaid.  Maria called me to handle her dad, George’s Medicaid application.  George had set up 529 plans for Maria’s daughters.  Are those accounts countable assets subject to Medicaid’s spend down rules?             Last week I explained that the contributions and growth […]

Read More

Gifting and the Medicaid Penalty (Part 2)

     Last week I was telling you about a recent New Jersey court case which resulted in a 10 and ½ year Medicaid penalty. The family tried to navigate New Jersey’s Medicaid rules on their own and then tried to fix their mistake. It didn’t work. Let’s examine why.      To summarize the facts, C.W. […]

Post Tagged with
Read More

Family Caregiver Agreements – Acceptable? (Part 2)

            Last week we were discussing family caregiver agreements in light of a recent New Jersey Appellate court decision, E.R. v. DMAHS.  In that case, Mom and Daughter entered into a caregiver agreement while Mom was living in Daughter’s home.             Mom eventually entered a nursing home and applied for Medicaid.  The State of New […]

Read More

Family Caregiver Agreements – Acceptable?

            When having a conversation about long term care and qualifying for Medicaid, every so often the topic turns to paying a family member to care for Mom or Dad. Is it a permitted Medicaid spend down?             In many cases the discussion occurs after the services have already been provided – often for years. […]

Read More

Planning Before the First Spouse Dies (Part 2)

            Last week I was telling you about Mary’s call.  Her mom is in a nursing home paying $11,000 per month and her sister, Terry is in a group home.  Mary doesn’t want to spend down all of Mom’s assets towards her care.  She wants to be able to save some for her sister’s needs, […]

Read More

When Doing it Yourself (Medicaid) Can Only Take You So Far (Part 2)

                Last week I was telling you about Joe’s call.  His mother, who was on Medicaid, received notice of an inheritance of $75,000.  Joe wanted to figure out a way to keep that money since he and his brother had given Mom money to pay some of her medical expenses that she never repaid.                 […]

Read More

Turning Life Insurance into Long Term Care Insurance (Part 2)

                So your parent has an insurance policy that they can no longer afford and they are in spend down mode to qualify for Medicaid.  Cashing in the policy and spending the proceeds is necessary before Medicaid will kick in.  But last week I mentioned another option, something called a life settlement.                 Here’s how […]

Read More

New Jersey Finally Updates Medicaid Divisor

As most people know, in order to qualify for Medicaid, one must have no more than $2000 in countable assets.  But to get under that limit you cannot simply transfer assets out of your name, or gift them.  That’s because Medicaid imposes a penalty – a waiting period actually – before one can qualify.  The […]

Read More

What to Do When You Get a Medicaid Estate Recovery Letter

                Joe called us because he received a letter from Medicaid looking for money.  Dad had been on Medicaid for 3 years before he passed away.  New Jersey was looking to recoup benefits it paid out on Dad’s behalf to the tune of approximately $150,000.                 Joe received what is called an estate recovery letter.  […]

Read More

Tax Fraud or Medicaid Penalty?

Joe called me because he had just taken over Dad’s finances and the management of care from his brother, Jim.  That’s when he made a discovery that troubled him and caused him to reach out to us. Dad was still living at home alone but his health was declining.  Joe began looking at assisted living […]

Read More