Top estate planning lawyer Guy B. Garner, III, Senior Attorney at Haiman Hogue in Arlington, TX, puts the record straight on misconceptions wrapped around Medicaid spend down and protecting assets from Nursing Home Costs. For more information please visit https://www.haimanhogue.com
Arlington, TX - December 10, 2022 —
Texas Senior Attorney Guy B. Garner has this week addressed various misconceptions about Medicaid.
Garner, of Arlington’s Haiman Hogue, PLLC, said: “There are many misconceptions that we frequently hear about Medicaid from clients, and it is time they were dispelled so there is better understanding of the topic.”
For more information please visit https://www.haimanhogue.com
One of the biggest misunderstandings is that a person must dispose of all their assets to claim Medicaid. “This is not true. Individuals and married couples can own some property and still qualify for Medicaid,” he countered.
Exemptions include assets such as having personal property, household furnishing, one vehicle, burial plots, pre-paid funerals, life estates in real property, trade or business property essential to self-support, and assets that can’t be converted to cash. The family homestead is also typically exempt.
Garner said that while asset transfers between spouses are exempt, transfers to persons other than spouses could mean penalties for the donor in terms of periods of ineligibility for Medicaid. “Giving away assets in an attempt to get Medicaid qualified should not be done. The more money or property given away, the longer a person will be ineligible for Medicaid.”
Medicaid will assess what gifts have been made in the previous five years before application, and if a transfer is found, then divestment penalties may be imposed. However, due to the subject’s complexity and rule changes, he urged consultation with an elder law attorney.
He dismissed several myths, including spending down assets on medical or nursing home bills. Garner said: “One reason nursing homes may want clients to believe this myth is because the private pay rates for nursing home residency are more than the Medicaid rates.”
Garner added: “People should remember that it’s never too late to start Medicaid planning. If planning was not done before the person entered a nursing home, assets might still be protected.” Again, the best advice is to seek an experienced Elder Law attorney.
He dismissed claims that a person can be eligible for Medicaid by putting their money in their spouse’s name or that a person can keep all their property when a spouse gets Medicaid.
“When a married person applies for Medicaid, the assets of both spouses are considered. If the non-applicant spouse does not provide information about their assets, then the Medicaid application can be denied,” he warned.
Other myths he shot down included living trusts, asset disclosure and financial thresholds that may or may not affect Medicaid applications. Garner said: “Assets owned by a revocable living trust are counted when determining financial eligibility and are vulnerable to nursing homes costs. However, other irrevocable Medicaid qualified types of trusts may be used to protect assets.’’
“As for thresholds, for 2022, a federal gift tax rule permits people to give up to $16,000 per year per donee without filing a federal gift tax return. Gifts may exceed this amount, but a gift tax return may have to be filed.”
Another wrong belief is that you don’t have to disclose assets to Medicaid. All assets must be disclosed, including savings bonds that do not produce current income.
He said it was untrue that a spouse’s income must be used to pay for nursing home care. “The institutionalized spouse is entitled to $60 per month on a personal needs allowance, and they can also pay for medical expenses not covered by Medicaid, including health insurance premiums for Medicare and private health insurance.”
He also advised that a person who enters a nursing home as a private pay resident must wait until a Medicaid bed becomes available to qualify for the aid.
Due to the complexity and scale of the topics, Garner urged people to consult an experienced Elder Law attorney.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Guy B. Garner
Email: Send Email
Organization: Haiman Hogue, PLLC. - Arlington, TX
Address: 690 E Lamar Blvd #115, Arlington, TX 76011
Phone: 817-261-5222
Website: https://www.haimanhogue.com
Release ID: 89086096
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