Mom is in a Nursing Home Rehab Program, and Medicare will run out in 2-weeks.
We are applying for Medicaid. Here are specific questions I need advice on.
1. My mom's assets are not to exceed a total of $3,500. Correct? Is there a specific break-down of these assets???? for example... $2,000 in cash and $1,500 life insurance or?
2. Mom has a pre-paid buriel plot. The value of this means NOTHING to Medicaid, right? Therefore it has no effect on the $3,500?
3. Mom has approximately 2,000 in the bank, therefore that would count towards the cash asset, right?
4. Mom has a life insurance policy worth $4,000 death benefit and $3,700 cash value. I believe she can have life insurance of 1,500, but if it exceeds this...then what?
Does the $1,500 life insurance which she can have...count towards teh cash asset total? Or is the base $1,500 exempt?
I'm considering cashing this policy in, then pre-paying funeral services. Would cashing this policy in, the same week we are applying for Medicaid cause concern if used for pre-paying funeral services?
- The life insurance company sent me a Irrevocable Funeral Home Assignment, if we sign this, I assume all monies go from life insurance to the Funeral Home, would you suggest this?
Thanks for your advice.
Mom is in a Nursing Home Rehab Program, and Medicare will run out in 2-weeks.
We are applying for Medicaid. Here are specific questions I need advice on.
1. My mom's assets are not to exceed a total of $3,500. Correct? Is there a specific break-down of these assets???? for example... $2,000 in cash and $1,500 life insurance or?
2. Mom has a pre-paid buriel plot. The value of this means NOTHING to Medicaid, right? Therefore it has no effect on the $3,500?
3. Mom has approximately 2,000 in the bank, therefore that would count towards the cash asset, right?
4. Mom has a life insurance policy worth $4,000 death benefit and $3,700 cash value. I believe she can have life insurance of 1,500, but if it exceeds this...then what?
Does the $1,500 life insurance which she can have...count towards teh cash asset total? Or is the base $1,500 exempt?
I'm considering cashing this policy in, then pre-paying funeral services. Would cashing this policy in, the same week we are applying for Medicaid cause concern if used for pre-paying funeral services?
- The life insurance company sent me a Irrevocable Funeral Home Assignment, if we sign this, I assume all monies go from life insurance to the Funeral Home, would you suggest this?
Thanks for your advice.
Tomc28, I am so sorry to hear you are in this situation! It's difficult enough to deal with a parent who is failing, let alone have to navigate the muddy Medicaid waters.
Having recently been through this myself, I strongly recommend you pay the $300-500 for a consultation with a Medicaid lawyer. That's what I did. I went into the meeting very well-informed, but I learned I could protect more of Mom's assets than I had initially thought.
DISCLAIMER I am not a lawyer, and laws vary from state to state. Having said that, here is what I understand about Medicaid qualification:
First, you need to make sure that the facility your mother is in has a Medicaid contract. Not all nursing homes do.
"Resources" (i.e.: assets) include cash, the home, other real estate, bank accounts, IRAs, 401(k)s, savings bonds, cash surrender value of life insurance, mutual funds, CDs, stocks and bonds, annuities, cars, and a few other things. Some resources are considered exempt, in terms of qualifying for Medicaid. But, in general, this is a relatively comprehensive list of what Medicaid considers a "resource."
Burial plots owned outright by the person applying for Medicaid generally are exempt. So, you're right: your mom's burial plot would not be considered an asset.
Prepaid funeral plans sometimes have to be held in an irrevocable trust to be considered "exempt" by Medicaid. This (and the allowable value) varies by state. So, this may not be a way to shield your mother's assets.
Under no circumstances should you attempt to shield your mom's assets by transferring them to yourself or other family members. This type of maneuver meets with penalties by Medicaid.
Like I said, Medicaid qualification can be very complication. Personally, I would advise you to contact a local Medicaid attorney ASAP and explain your circumstances. They may be willing to meet with you on very short notice. Take a comprehensive list of all your mother's assets with you to the meeting.
Here is a great list of resources regarding Medicaid right here on the Caring.com website: http://www.caring.com/medicaid
Best wishes to you at this difficult time! Elizabeth Shean
Tomc28, I am so sorry to hear you are in this situation! It's difficult enough to deal with a parent who is failing, let alone have to navigate the muddy Medicaid waters.
Having recently been through this myself, I strongly recommend you pay the $300-500 for a consultation with a Medicaid lawyer. That's what I did. I went into the meeting very well-informed, but I learned I could protect more of Mom's assets than I had initially thought.
DISCLAIMER I am not a lawyer, and laws vary from state to state. Having said that, here is what I understand about Medicaid qualification:
First, you need to make sure that the facility your mother is in has a Medicaid contract. Not all nursing homes do.
"Resources" (i.e.: assets) include cash, the home, other real estate, bank accounts, IRAs, 401(k)s, savings bonds, cash surrender value of life insurance, mutual funds, CDs, stocks and bonds, annuities, cars, and a few other things. Some resources are considered exempt, in terms of qualifying for Medicaid. But, in general, this is a relatively comprehensive list of what Medicaid considers a "resource."
Burial plots owned outright by the person applying for Medicaid generally are exempt. So, you're right: your mom's burial plot would not be considered an asset.
Prepaid funeral plans sometimes have to be held in an irrevocable trust to be considered "exempt" by Medicaid. This (and the allowable value) varies by state. So, this may not be a way to shield your mother's assets.
Under no circumstances should you attempt to shield your mom's assets by transferring them to yourself or other family members. This type of maneuver meets with penalties by Medicaid.
Like I said, Medicaid qualification can be very complication. Personally, I would advise you to contact a local Medicaid attorney ASAP and explain your circumstances. They may be willing to meet with you on very short notice. Take a comprehensive list of all your mother's assets with you to the meeting.
Here is a great list of resources regarding Medicaid right here on the Caring.com website: http://www.caring.com/medicaid
Best wishes to you at this difficult time! Elizabeth Shean
Thank you Elizabeth. I can't even begin to tell you the roller coaster ride I've been in, while caring for my mom over the past 14 years since her stroke.
I've called two local elder law attorneys. One of them wants to sit down for a "free consult", then take me step-by-step thru a process. I told them I only wanted 1-2 hours with them to review immediate needs, but they aren't really interested. The other, well...after 4 messages which I've left for him, I got a call back this past Friday, now awaiting his call again. I believe I have everything set now...except for this Life Insurance issue.
If anyone else out there has suggestions related to the Life Insurance $$ I mentioned, let me know. Thanks again, Tom C
Thank you Elizabeth. I can't even begin to tell you the roller coaster ride I've been in, while caring for my mom over the past 14 years since her stroke.
I've called two local elder law attorneys. One of them wants to sit down for a "free consult", then take me step-by-step thru a process. I told them I only wanted 1-2 hours with them to review immediate needs, but they aren't really interested. The other, well...after 4 messages which I've left for him, I got a call back this past Friday, now awaiting his call again. I believe I have everything set now...except for this Life Insurance issue.
If anyone else out there has suggestions related to the Life Insurance $$ I mentioned, let me know. Thanks again, Tom C
Hello, I did transfer my mother's life insurance policy over to the funeral home irrevocably. I was acting on the advice of a lawyer, and following my own instincts. Paying for funeral expenses in our case would have been the only purpose for the life insurance, so this made sense to us.
I hope this helps you navigate.
More importanly, my heart is with you. I wish you as smooth a journey as possible.
Hello, I did transfer my mother's life insurance policy over to the funeral home irrevocably. I was acting on the advice of a lawyer, and following my own instincts. Paying for funeral expenses in our case would have been the only purpose for the life insurance, so this made sense to us.
I hope this helps you navigate.
More importanly, my heart is with you. I wish you as smooth a journey as possible.
I would like to know about VA Benefits for my fathers care. He has assets so what assets can he have and still be qualified for VA benefits?
I would like to know about VA Benefits for my fathers care. He has assets so what assets can he have and still be qualified for VA benefits?
Your mom wont qualify for medicaid she has too much in assests. 1- $2000.00 is all the total of everything she can own. 2- Her single car even if brand new does not influence this. 3- Her home is questionable - check with the local office 4- her burial plot and life insurance knock her clean out of the ball park for at least 2 years alone. 5- Your right about her bank account.
The only exemptions I believe are the car - I know this for a fact. The house Im not too sure on.
(1) This is what DHHS will see: $2,000.00 cash $4,000.00 ins. $UKN Retirement income $6,000.00- $8,000.00 total Income ________________________
(2) This is what DHHS will see: $2,000.00 Cash $3,700.00 Cash Value ( money she can hav now) $UKN Retirement Income $5,700.00 - $7,700.00 Total Income _____________________________________
Your mom wont qualify for medicaid she has too much in assests. 1- $2000.00 is all the total of everything she can own. 2- Her single car even if brand new does not influence this. 3- Her home is questionable - check with the local office 4- her burial plot and life insurance knock her clean out of the ball park for at least 2 years alone. 5- Your right about her bank account.
The only exemptions I believe are the car - I know this for a fact. The house Im not too sure on.
(1) This is what DHHS will see: $2,000.00 cash $4,000.00 ins. $UKN Retirement income $6,000.00- $8,000.00 total Income ________________________
(2) This is what DHHS will see: $2,000.00 Cash $3,700.00 Cash Value ( money she can hav now) $UKN Retirement Income $5,700.00 - $7,700.00 Total Income _____________________________________
I have POA for an elderly family friend who had to be placed in a nursing home for Alzheimer's care on very short notice. I too was overwhelmed but found a great deal of practical help from our county's Office of the Aging and SS Disability Office. On a very practical level, when you go to fill out the Medicaid paperwork, bring a lighted magnifying glass and a book to lean on to fill out the tiny print. There was an entire booklet to fill out, very small print, written in orange type on beige paper to be completed in a very poorly lit room. I do not have a vision problem but found this task very time consuming and extremely difficult. Also I had to answer every question on every page even if it didn't seem to apply, ie; was she a teenage, unwed mother, illegal resident, name of schools attended and dates of completion etc. You cannot just write Not Applicable or Unknown.
In my friend's case, the nursing home takes her SS and her entire retirement with the exception of $50. Her prepaid burial expenses did not count. Her life insurance policy had to be cashed in and the funds depleted before medicaid would kick in. I was able to buy her appropriate, easy on/off clothing, a chair, TV and light for her room as part of the spend down. A long lost brother appeared to claim her car and any funds in her bank account.
I know you didn't ask this question but thought it might be helpful to you or others. I also learned from this site not to sign anything saying you will be responsible for any nursing home bills not covered. Also when all financial advisors tell you it isn't necessary to save old banking statements, they are wrong. I had to provide every month's statement for the past 5 years. Because they were not saved, I had to pay for copies. Not only was this expensive, it was time consuming.
Good luck. You are in my prayers.
I have POA for an elderly family friend who had to be placed in a nursing home for Alzheimer's care on very short notice. I too was overwhelmed but found a great deal of practical help from our county's Office of the Aging and SS Disability Office. On a very practical level, when you go to fill out the Medicaid paperwork, bring a lighted magnifying glass and a book to lean on to fill out the tiny print. There was an entire booklet to fill out, very small print, written in orange type on beige paper to be completed in a very poorly lit room. I do not have a vision problem but found this task very time consuming and extremely difficult. Also I had to answer every question on every page even if it didn't seem to apply, ie; was she a teenage, unwed mother, illegal resident, name of schools attended and dates of completion etc. You cannot just write Not Applicable or Unknown.
In my friend's case, the nursing home takes her SS and her entire retirement with the exception of $50. Her prepaid burial expenses did not count. Her life insurance policy had to be cashed in and the funds depleted before medicaid would kick in. I was able to buy her appropriate, easy on/off clothing, a chair, TV and light for her room as part of the spend down. A long lost brother appeared to claim her car and any funds in her bank account.
I know you didn't ask this question but thought it might be helpful to you or others. I also learned from this site not to sign anything saying you will be responsible for any nursing home bills not covered. Also when all financial advisors tell you it isn't necessary to save old banking statements, they are wrong. I had to provide every month's statement for the past 5 years. Because they were not saved, I had to pay for copies. Not only was this expensive, it was time consuming.
Good luck. You are in my prayers.
This is a very difficult time for you and can be made harder by not having the correct information. Medicaid requirements will vary tremendously by state. It will not help you to have information that doesn't apply to the state your Mom resides in.
The case worker that handles the Medicaid application knows the answer to most if not all of your questions off the top of his/her head. They can help you navigate the situation.
If your mother is that close to qualifying, there probably isn't anything to shelter and paying for an elder care attorney would just be a waste. I'd be very cautious as the information you need should be available for free from various sources. Does your area have a senior action committee or liason that helps provide information to local seniors? That may be a good source also. The social service office of the facility that your Mom resides in should also be able to provide contacts to have your questions answered. Good luck. I've been there and it will get better.
This is a very difficult time for you and can be made harder by not having the correct information. Medicaid requirements will vary tremendously by state. It will not help you to have information that doesn't apply to the state your Mom resides in.
The case worker that handles the Medicaid application knows the answer to most if not all of your questions off the top of his/her head. They can help you navigate the situation.
If your mother is that close to qualifying, there probably isn't anything to shelter and paying for an elder care attorney would just be a waste. I'd be very cautious as the information you need should be available for free from various sources. Does your area have a senior action committee or liason that helps provide information to local seniors? That may be a good source also. The social service office of the facility that your Mom resides in should also be able to provide contacts to have your questions answered. Good luck. I've been there and it will get better.
Bailey123 - you should look through the VA web site, they do a good job telling who is qualified for which benefit. Or find a VA office in your area where you can talk to someone directly and get something in writing. FYI - if you get told "NO" for anything, don't accept NO for an answer - ask for the next person up in charge and keep pushing for the right answer. Best of luck to you.
Bailey123 - you should look through the VA web site, they do a good job telling who is qualified for which benefit. Or find a VA office in your area where you can talk to someone directly and get something in writing. FYI - if you get told "NO" for anything, don't accept NO for an answer - ask for the next person up in charge and keep pushing for the right answer. Best of luck to you.