I started trust work and advanced nursing home planning in 1999. That experience is the basis that led me to NFA trust work. I have assisted many people with the admission process of a family member entering a nursing home as well as the process of qualifying the patient for Medicaid.
From 1999 until 2006, it was possible to access Medicaid benefits for nursing home patients even if the patient had done little or no planning prior to entering the nursing home. I knew the state and federal laws and the Georgia Medicaid Manual very well, and I helped many people qualify for the benefits they paid for while working and paying into Social Security.
This is an example of a very common phone call I would get in those days:
Caller: “Mom went in the hospital 3 weeks ago and was transferred to the nursing home 2 days ago. I hear that you help people qualify for Medicaid.”
Roy: “Yes sir I do. Is your Mom married or a widow? Can you give me a ball park figure on your Mom’s income and her resources?
Caller: “She has been a widow since Dad died 8 years ago. She owns her house which is worth about $150,000. She has savings of about $200,000 in the local bank. Her monthly income is Social Security and Dad’s pension and is about $1500 per month. We have been told that she will have to spend all her savings and that she will need to sell her home. Is that true? We don’t know what to do.”
Roy: “Selling her home is a really bad idea. It would turn an uncountable resource into cash which is a countable resource. Whoever told you that is uninformed. We can save your mom’s home and virtually all of her $200k savings. Almost all of her income will go towards her monthly nursing home bill. She is allowed to keep a small amount of income.”
Caller: “So you are telling me that Mom can keep her house and that she doesn’t have to spend all her savings? How can that be? We were told that she could only have $2000 in the bank before she could qualify for Medicaid.”
Roy: “If you understand how the state looks at resources and income and are able to place resources in the property category it is not a problem to qualify.”
Caller: When can we make an appointment?”
Those were the good old days, and they ended in 2005 when the Federal government passed the Deficit Reduction Act of 2005 (actually in February of 2006 when it was implemented).
NOW YOU MUST PLAN AHEAD TO AVOID SPENDING DOWN YOUR LIFE SAVINGS BEFORE QUALIFYING FOR NURSING HOME MEDICAID.
You also must plan ahead to keep the state from taking your home place after your death if you qualify for Medicaid. None of us want to end up in a nursing home, but my crystal ball is broken so I can’t tell you what will happen. An effective estate plan should address the nursing home issue, especially since it can cost $6000-$8000 per month or more for private pay nursing home care. The Estate Recovery issue must also be addressed.
Some Basic NH Medicaid Info:
To qualify for NH Medicaid a single person is only allowed $2000 in cash/money in the bank.
The look back period for all transfers for less than value (gifts or transfers to trust) is 5 years.
Only one vehicle is excludable as a resource. All additional vehicles are countable resources.
Cash value of life insurance policies is a countable resource.
Home place is non countable for qualification only up to $552,000 in value. If Mom lives in a house on the 200 acre family farm you may have a problem.
Estate Recovery has been in effect in Georgia since 2006. This means that your home place that you were allowed to keep while in the nursing home is subject to being taken by the state after you pass away.
If you would like to discuss how an advanced estate plan can help you preserve what you have worked your whole life for I will be glad to consult with you.
Roy Baker
Phone: 229-869-8210
Email: [email protected]
From 1999 until 2006, it was possible to access Medicaid benefits for nursing home patients even if the patient had done little or no planning prior to entering the nursing home. I knew the state and federal laws and the Georgia Medicaid Manual very well, and I helped many people qualify for the benefits they paid for while working and paying into Social Security.
This is an example of a very common phone call I would get in those days:
Caller: “Mom went in the hospital 3 weeks ago and was transferred to the nursing home 2 days ago. I hear that you help people qualify for Medicaid.”
Roy: “Yes sir I do. Is your Mom married or a widow? Can you give me a ball park figure on your Mom’s income and her resources?
Caller: “She has been a widow since Dad died 8 years ago. She owns her house which is worth about $150,000. She has savings of about $200,000 in the local bank. Her monthly income is Social Security and Dad’s pension and is about $1500 per month. We have been told that she will have to spend all her savings and that she will need to sell her home. Is that true? We don’t know what to do.”
Roy: “Selling her home is a really bad idea. It would turn an uncountable resource into cash which is a countable resource. Whoever told you that is uninformed. We can save your mom’s home and virtually all of her $200k savings. Almost all of her income will go towards her monthly nursing home bill. She is allowed to keep a small amount of income.”
Caller: “So you are telling me that Mom can keep her house and that she doesn’t have to spend all her savings? How can that be? We were told that she could only have $2000 in the bank before she could qualify for Medicaid.”
Roy: “If you understand how the state looks at resources and income and are able to place resources in the property category it is not a problem to qualify.”
Caller: When can we make an appointment?”
Those were the good old days, and they ended in 2005 when the Federal government passed the Deficit Reduction Act of 2005 (actually in February of 2006 when it was implemented).
NOW YOU MUST PLAN AHEAD TO AVOID SPENDING DOWN YOUR LIFE SAVINGS BEFORE QUALIFYING FOR NURSING HOME MEDICAID.
You also must plan ahead to keep the state from taking your home place after your death if you qualify for Medicaid. None of us want to end up in a nursing home, but my crystal ball is broken so I can’t tell you what will happen. An effective estate plan should address the nursing home issue, especially since it can cost $6000-$8000 per month or more for private pay nursing home care. The Estate Recovery issue must also be addressed.
Some Basic NH Medicaid Info:
To qualify for NH Medicaid a single person is only allowed $2000 in cash/money in the bank.
The look back period for all transfers for less than value (gifts or transfers to trust) is 5 years.
Only one vehicle is excludable as a resource. All additional vehicles are countable resources.
Cash value of life insurance policies is a countable resource.
Home place is non countable for qualification only up to $552,000 in value. If Mom lives in a house on the 200 acre family farm you may have a problem.
Estate Recovery has been in effect in Georgia since 2006. This means that your home place that you were allowed to keep while in the nursing home is subject to being taken by the state after you pass away.
If you would like to discuss how an advanced estate plan can help you preserve what you have worked your whole life for I will be glad to consult with you.
Roy Baker
Phone: 229-869-8210
Email: [email protected]
