By Kim Boyer
Elder Law News
April 2006 (updated)
Medicaid law is complex and there is a great deal of confusion over the "division of assets" and the "Medicaid spend-down." Everyone's situation is different and the following example is just one of the ways in which many of our clients are able to qualify their spouse for Medicaid without spending down.
Bonnie's husband has advanced Alzheimer's and must go into a nursing home. She's afraid that their entire life savings will be gone in a year if she has to pay the nursing home $5,000 per month, and that she won't be able to pay her monthly bills.
The couple has $98,000 in savings, a house and a car. His social security check is $1,442, and her social security check is $942. The house and car are exempt. Without a court order, the state will total all of the countable assets and Bonnie would only be able to keep one-half, or $49,000. Also, she would only be able to keep $1,650 (2006 figure) per month income.
There is good news for Bonnie. It's possible she will get to keep everything - all of the assets, all of the income and the house - and still have Medicaid pay her husband's nursing home costs.
Nevada law allows her to seek an increase in the amount of assets and income she can keep. Bonnie will need to petition the court to increase the assets and income, with what is called a Petition to Divide the Assets and Income and for Support. The Court can then set aside to Alice the new increased maximums for 2006: assets of up to $99,540, and income of up to $2,488.50 per month.
With proper advice, she'll be able to avoid the spend-down and keep everything she and her husband have worked so hard for.
