One
concern that you might have as you age is how you're going to pay for
nursing home care. As of 2019, the average nursing home
costs $8,121
a
month. Such a large amount can quickly erode your hard-earned
savings.
Medicaid
steps in and assists with the costs of a nursing home once your
income reaches a certain threshold. However, the Medicaid program
assumes that you will contribute all your income to long-term care
expenses. In reality, you might want to dedicate only a small stipend
for the expenses.
Families
may try to transfer their loved one's assets so that they don't lose
their life savings to the costs associated with nursing home care.
However, when this is done incorrectly, it can put your loved one's
assets at risk and even disqualify them from receiving Medicaid
assistance.
Medicaid
planning requires extensive planning as a single individual, but if
you're married, this it even more important to make the right moves.
Read on for valuable information to assist with married Medicaid
planning.
Exact
Rules Vary With Each State
Medicaid
is a program that federal and state governments both fund; this means
that the exact rules regarding eligibility and asset limits vary from
state to state. Rules also differ if you're married to ensure that
the surviving spouse isn't left penniless trying to pay for their
spouse's care.
Income
Limits
In
Florida, there are different guidelines for your assets and your
income. A married individual in Florida can't make more
than $2,250
on
a monthly basis to qualify for Medicaid. Your income includes regular
monthly payments, like Social Security and pension benefits.
However,
if you're married, you're allowed to transfer a portion of your
income to their spouse so that they aren't left impoverished. The
exact amount depends on your situation, but the maximum transferable
income falls between $2,003 and $3,090. If one spouse doesn't require
care in a nursing home, this ensures that they have ample funds to
support themselves.
Asset
Limits
There
are also laws that limit how many assets you can retain to qualify
for Medicaid. These figures vary based on your marital status,
whether you're applying for Medicaid as a couple, and the type of
assets that you have.
Countable
assets are included in calculations that determine if an individual
possesses too many assets to qualify for Medicaid, while exempt
assets do not count. Assets considered countable include items like
stocks, bonds, investment accounts, checking accounts, and savings
accounts. You can hold up to $2,000 in countable assets if you're
single and up to $3,000 in assets if you're married and both spouses
want to apply for Medicaid.
Home
equity and your personal vehicle are considered exempt assets, though
they are governed by a few rules. Florida permits you to exclude up
to $840,000 in home equity. Equity that exceeds this amount must go
towards paying for your nursing home expenses.
You're
allowed to exempt the equity in your vehicle if it's you only means
of transportation. There are no limitations that govern how much
vehicle equity you can exempt for your primary vehicle. However, if
you own multiple vehicles that are less than seven years old, the
values of these vehicles must be included. Vehicles older than seven
years old are labeled countable assets if they're considered luxury
or classic vehicles.
It's
possible to convert countable assets into exempt assets in some
cases. For example, if your home needs repairs, you can spend some of
your savings (a countable asset) to make the necessary renovations
(effectively converting it into home equity, an exempt asset.)
Consult with an attorney to make sure that your plans won't trigger
scrutiny when your spouse applies for Medicaid.
Community
Spouse Resource Allowance
In
situation where one spouse doesn't require nursing home care, the
spouse can use their Community Spouse Resource Allowance (CSRA) to
exempt more countable assets. Florida law currently permits spouses
to exempt up to $120,900 without impacting their spouse's ability to
qualify for Medicaid.
Ready
to begin your Medicaid planning? Contact
Donald
B. Linsky & Associate PA to schedule an appointment.
