http://medicaidsecretsforum.com/ Sat, 19 May 2012 18:28:48 +0000 MyBB http://medicaidsecretsforum.com/showthread.php?tid=226 Fri, 04 May 2012 21:21:37 +0000 http://medicaidsecretsforum.com/showthread.php?tid=226
My elderly cousin is getting ready to purchase a Medicaid compliant annuity to help her pay for the living costs at an Assisted Living Facility (ALF). The amount is figured so that her monthly income from the annuity + her Social Security + her retirement income = the amount she needs to live on while in the Medicaid "penalty phase" (due to gifting).

So here's the question:

Currently she qualifies for SLMB status, so the state is picking up her Medicare Part B premium and helps with some prescription drug costs due to her low monthly income. The Medicaid annuity payment will put her OVER the income limit needed to qualify for this benefit to continue. Since the Medicaid annuity isn't technically considered income for Medicaid purposes (or it's "allowable income"), does that mean her SLMB status will continue? Or does she lose the SLMB status and have to start paying her Part B premium and higher drug costs?

Thanks in advance for any insight ]]>
My elderly cousin is getting ready to purchase a Medicaid compliant annuity to help her pay for the living costs at an Assisted Living Facility (ALF). The amount is figured so that her monthly income from the annuity + her Social Security + her retirement income = the amount she needs to live on while in the Medicaid "penalty phase" (due to gifting).

So here's the question:

Currently she qualifies for SLMB status, so the state is picking up her Medicare Part B premium and helps with some prescription drug costs due to her low monthly income. The Medicaid annuity payment will put her OVER the income limit needed to qualify for this benefit to continue. Since the Medicaid annuity isn't technically considered income for Medicaid purposes (or it's "allowable income"), does that mean her SLMB status will continue? Or does she lose the SLMB status and have to start paying her Part B premium and higher drug costs?

Thanks in advance for any insight ]]> http://medicaidsecretsforum.com/showthread.php?tid=203 Thu, 26 Apr 2012 08:32:24 +0000 http://medicaidsecretsforum.com/showthread.php?tid=203 http://medicaidsecretsforum.com/showthread.php?tid=189 Mon, 23 Apr 2012 01:35:19 +0000 http://medicaidsecretsforum.com/showthread.php?tid=189 http://medicaidsecretsforum.com/showthread.php?tid=186 Thu, 19 Apr 2012 00:13:45 +0000 http://medicaidsecretsforum.com/showthread.php?tid=186
My grandmother is fast approaching a nursing home. I don't think she has any assets that would disqualify her, and I recall a note of a penalty divisor for Tennessee being $3900. Does that mean that adding my name (a gift?) isn't going to affect her penalty period, since half the value of the home ($70,000) divided by 3900 is less than 18 months? Or is the full $140,000 value used for the penalty, in which case she'll be ineligible for 35 months? Or does ANY gift basically disqualify you for 5 years, no matter how small?

Further...is there anything that the government/medicaid can do to take the house from me once she goes into the nursing home? I'd really like to have a place to live. I haven't been living there currently, though my efforts over the last several years have probably kept her out of a nursing home or assisted living.]]>
My grandmother is fast approaching a nursing home. I don't think she has any assets that would disqualify her, and I recall a note of a penalty divisor for Tennessee being $3900. Does that mean that adding my name (a gift?) isn't going to affect her penalty period, since half the value of the home ($70,000) divided by 3900 is less than 18 months? Or is the full $140,000 value used for the penalty, in which case she'll be ineligible for 35 months? Or does ANY gift basically disqualify you for 5 years, no matter how small?

Further...is there anything that the government/medicaid can do to take the house from me once she goes into the nursing home? I'd really like to have a place to live. I haven't been living there currently, though my efforts over the last several years have probably kept her out of a nursing home or assisted living.]]> http://medicaidsecretsforum.com/showthread.php?tid=180 Mon, 26 Mar 2012 00:54:35 +0000 http://medicaidsecretsforum.com/showthread.php?tid=180 Both my parents live off their SS checks each month. They live in my brothers home alone. They do not pay any rent, the only thing they pay for are the utilities.

My dad may have to be put into a nursing home because he fell and cannot walk anymore. My parents are both 90 yrs old and my mom cannot take care of him. Can he get into a nursing home through medicaid even though they own 1/2 of my home. They were only trying to help me get qualified. My credit is above average to excellent but because I own another home with less then 30% equity in it I could not get approved on my own so my parents co signed for me. My first home has been rented. The new home I just purchased has both my parents on the deed but do not live with me.

Thank you for your time,
Ar]]> Both my parents live off their SS checks each month. They live in my brothers home alone. They do not pay any rent, the only thing they pay for are the utilities.

My dad may have to be put into a nursing home because he fell and cannot walk anymore. My parents are both 90 yrs old and my mom cannot take care of him. Can he get into a nursing home through medicaid even though they own 1/2 of my home. They were only trying to help me get qualified. My credit is above average to excellent but because I own another home with less then 30% equity in it I could not get approved on my own so my parents co signed for me. My first home has been rented. The new home I just purchased has both my parents on the deed but do not live with me.

Thank you for your time,
Ar]]> http://medicaidsecretsforum.com/showthread.php?tid=178 Thu, 22 Mar 2012 19:09:39 +0000 http://medicaidsecretsforum.com/showthread.php?tid=178
Forgive my ignorance if my explanations and/or understanding of how the whole “process” works is incorrect…please correct me!

Quick background: My cousin is 85 years old, single, and she’s just been diagnosed with Alzheimer's (though I think she’s has symptoms for a couple of years). We plan on selling her home in Miami and moving her to Orlando to be closer to us.

Assuming her house is sold and we move her to Orlando, she'll have around $175,000 in the bank and around $1,120 monthly income.

I feel that it's in her best interest to move her directly into an ALF (there is one that has a great rep around here), but I'm not sure I can convince her at this point in time. Also, although there are openings at the facility at this moment, there is a 1 year wait to qualify for American Eldercare, the ONLY ALF Medicaid insurance that this particular facility takes.

After investigating other options including keeping her home in Miami, having her buy a home here in Orlando, buying LTC insurance, Term Life insurance and/or irrevocable prepaid funeral plans, etc., it appears to me that a “Medicaid compliant” annuity is really her only option to POSSIBLY protect some of her assets and MAYBE have something left to leave her heirs after she passes on (I understand that the DCF of FL would be 1st beneficiary).

I’ve talked to some reputable financial advisors who deal specifically with Medicaid compliant annuities (Krause Financial Services, for one). But I’ve been advised of two different kinds of strategies. One strategy deals with “gifting” half of her assets thus creating the Medicaid gift penalty, but then using the income from the annuity to help “self pay” through the Medicaid penalty period. In this scenario she’s able to give something to her heirs. Another advisor suggested putting ALL of her assets (except those she’s allowed to have) into a Medicaid compliant annuity and immediately qualify her for ALF Medicaid, but there’s no guarantee that any money will be left for heirs. Also keep in mind that this particular ALF has a 1 year wait for the American Eldercare insurance and she’d have to “self-pay” for a year even while technically qualifying for ALF Medicaid.

So this is our hypothetical plan: With the annuity income (either way it was explained) she would “self-pay” at an ALF while she is on the waitlist for the American Eldercare insurance or waiting out the Medicare penalty phase for gifting. Then assuming at some point she is approved for the American Eldercare, she would then continue to use the income from the annuity to pay her portion of the ALF facility fees (which would be less once she’s approved for the insurance).

Now for the questions!

1. Do you agree that due to her age (86) and diagnosis (Alzheimer’s) that LTC insurance and term life insurance are NOT options for her? It seemed like a “no brainer,” but then I found a product on Krause Financial Services’ website called a “GenBuilder/Single Premium Universal Life Insurance” that says that the issue ages are 45-85.

2. Would our hypothetical plan work if she were to FIRST go into a rented apartment for a period of time BEFORE she went into an ALF? Or would she have to be LIVING in an ALF when she applies for ALF Medicaid?

3. Should the annuity be opened the very second she sells her house and has the money in the bank?

4. Are there different kinds of “Medicaid compliant” annuities available or were they just explained to me differently?

5. I know that the amount placed into the annuity must be a delicate balance in order to provide her with enough income to live WITHOUT Medicaid while she’s waiting to be approved, but not disqualify her from GETTING Medicaid! If her income winds up being over the Medicaid “income threshold,” is it an option to also do some sort of Qualified Income Trust for the “overage” that the annuity created?

6. Along with #5, if and when she needs an actual nursing home in the future, did we “mess up” her eligibility because we increased her income so that she could live at the ALF?]]>
Forgive my ignorance if my explanations and/or understanding of how the whole “process” works is incorrect…please correct me!

Quick background: My cousin is 85 years old, single, and she’s just been diagnosed with Alzheimer's (though I think she’s has symptoms for a couple of years). We plan on selling her home in Miami and moving her to Orlando to be closer to us.

Assuming her house is sold and we move her to Orlando, she'll have around $175,000 in the bank and around $1,120 monthly income.

I feel that it's in her best interest to move her directly into an ALF (there is one that has a great rep around here), but I'm not sure I can convince her at this point in time. Also, although there are openings at the facility at this moment, there is a 1 year wait to qualify for American Eldercare, the ONLY ALF Medicaid insurance that this particular facility takes.

After investigating other options including keeping her home in Miami, having her buy a home here in Orlando, buying LTC insurance, Term Life insurance and/or irrevocable prepaid funeral plans, etc., it appears to me that a “Medicaid compliant” annuity is really her only option to POSSIBLY protect some of her assets and MAYBE have something left to leave her heirs after she passes on (I understand that the DCF of FL would be 1st beneficiary).

I’ve talked to some reputable financial advisors who deal specifically with Medicaid compliant annuities (Krause Financial Services, for one). But I’ve been advised of two different kinds of strategies. One strategy deals with “gifting” half of her assets thus creating the Medicaid gift penalty, but then using the income from the annuity to help “self pay” through the Medicaid penalty period. In this scenario she’s able to give something to her heirs. Another advisor suggested putting ALL of her assets (except those she’s allowed to have) into a Medicaid compliant annuity and immediately qualify her for ALF Medicaid, but there’s no guarantee that any money will be left for heirs. Also keep in mind that this particular ALF has a 1 year wait for the American Eldercare insurance and she’d have to “self-pay” for a year even while technically qualifying for ALF Medicaid.

So this is our hypothetical plan: With the annuity income (either way it was explained) she would “self-pay” at an ALF while she is on the waitlist for the American Eldercare insurance or waiting out the Medicare penalty phase for gifting. Then assuming at some point she is approved for the American Eldercare, she would then continue to use the income from the annuity to pay her portion of the ALF facility fees (which would be less once she’s approved for the insurance).

Now for the questions!

1. Do you agree that due to her age (86) and diagnosis (Alzheimer’s) that LTC insurance and term life insurance are NOT options for her? It seemed like a “no brainer,” but then I found a product on Krause Financial Services’ website called a “GenBuilder/Single Premium Universal Life Insurance” that says that the issue ages are 45-85.

2. Would our hypothetical plan work if she were to FIRST go into a rented apartment for a period of time BEFORE she went into an ALF? Or would she have to be LIVING in an ALF when she applies for ALF Medicaid?

3. Should the annuity be opened the very second she sells her house and has the money in the bank?

4. Are there different kinds of “Medicaid compliant” annuities available or were they just explained to me differently?

5. I know that the amount placed into the annuity must be a delicate balance in order to provide her with enough income to live WITHOUT Medicaid while she’s waiting to be approved, but not disqualify her from GETTING Medicaid! If her income winds up being over the Medicaid “income threshold,” is it an option to also do some sort of Qualified Income Trust for the “overage” that the annuity created?

6. Along with #5, if and when she needs an actual nursing home in the future, did we “mess up” her eligibility because we increased her income so that she could live at the ALF?]]> http://medicaidsecretsforum.com/showthread.php?tid=177 Tue, 20 Mar 2012 15:43:53 +0000 http://medicaidsecretsforum.com/showthread.php?tid=177
During this time, I endured a divorce and made slightly more income in my self-employed small business. I am worried that I might be over the income guidelines for a single person. My Medicaid is very important to me as I have some health problems.

Is there any real way for me to save my Medicaid? Maybe I may not lose it at all.]]>
During this time, I endured a divorce and made slightly more income in my self-employed small business. I am worried that I might be over the income guidelines for a single person. My Medicaid is very important to me as I have some health problems.

Is there any real way for me to save my Medicaid? Maybe I may not lose it at all.]]> http://medicaidsecretsforum.com/showthread.php?tid=173 Mon, 12 Mar 2012 02:38:23 +0000 http://medicaidsecretsforum.com/showthread.php?tid=173
My question is: Will the selling of the home now affect the Medicaid benefits of the first person, or is it too late to give her part to children. She will get approximately $20,000 from the sale. We are located in the state of Virginia.]]>
My question is: Will the selling of the home now affect the Medicaid benefits of the first person, or is it too late to give her part to children. She will get approximately $20,000 from the sale. We are located in the state of Virginia.]]> http://medicaidsecretsforum.com/showthread.php?tid=166 Tue, 06 Mar 2012 19:58:22 +0000 http://medicaidsecretsforum.com/showthread.php?tid=166 http://medicaidsecretsforum.com/showthread.php?tid=163 Sun, 04 Mar 2012 07:08:50 +0000 http://medicaidsecretsforum.com/showthread.php?tid=163 http://medicaidsecretsforum.com/showthread.php?tid=156 Fri, 10 Feb 2012 16:25:39 +0000 http://medicaidsecretsforum.com/showthread.php?tid=156 http://medicaidsecretsforum.com/showthread.php?tid=154 Mon, 06 Feb 2012 19:34:54 +0000 http://medicaidsecretsforum.com/showthread.php?tid=154 http://medicaidsecretsforum.com/showthread.php?tid=153 Mon, 30 Jan 2012 04:24:34 +0000 http://medicaidsecretsforum.com/showthread.php?tid=153 http://medicaidsecretsforum.com/showthread.php?tid=152 Sun, 29 Jan 2012 01:44:58 +0000 http://medicaidsecretsforum.com/showthread.php?tid=152 http://medicaidsecretsforum.com/showthread.php?tid=133 Thu, 15 Dec 2011 20:33:21 +0000 http://medicaidsecretsforum.com/showthread.php?tid=133
Is the income off of the mineral right the only asset used to calulate income only? Or is it the value of the mineral right used to calculate as an asset? And if it is the value of the mineral right, if there is not income from the mineral right how is it evaluated? Grandmother has as an asset several mineral rights. Only a few generate income each month. Less than $600.00 per month and that fluctuates.

Cindy]]>
Is the income off of the mineral right the only asset used to calulate income only? Or is it the value of the mineral right used to calculate as an asset? And if it is the value of the mineral right, if there is not income from the mineral right how is it evaluated? Grandmother has as an asset several mineral rights. Only a few generate income each month. Less than $600.00 per month and that fluctuates.

Cindy]]> http://medicaidsecretsforum.com/showthread.php?tid=122 Sun, 04 Dec 2011 21:44:00 +0000 http://medicaidsecretsforum.com/showthread.php?tid=122
My question pertains to this: if she goes into a nursing home paid by Medicaid, will they be entitled to 50% of the proceeds from the home upon her death? I thought maybe since she did this back in January 2002 it might be safe from recovery.

Also my brother has lived in the home for more than two years, but I did not know if Indiana honors the two year rule which would allow him to live there until he dies, and if they can get 1/2 of home, they would not force it until upon his death. Can you please tell me if you think me & my mom’s home is safe from recovery?

Thank you!
—Vickie]]>
My question pertains to this: if she goes into a nursing home paid by Medicaid, will they be entitled to 50% of the proceeds from the home upon her death? I thought maybe since she did this back in January 2002 it might be safe from recovery.

Also my brother has lived in the home for more than two years, but I did not know if Indiana honors the two year rule which would allow him to live there until he dies, and if they can get 1/2 of home, they would not force it until upon his death. Can you please tell me if you think me & my mom’s home is safe from recovery?

Thank you!
—Vickie]]> http://medicaidsecretsforum.com/showthread.php?tid=87 Fri, 25 Nov 2011 17:28:30 +0000 http://medicaidsecretsforum.com/showthread.php?tid=87
Can she buy a rental house or get a mortage from me for a percentage of ownership in my home and still qualify? I understand that any net rent from the rental or interest from the mortgage would count towards her monthly income.

Any other suggestions?

Thank you.
i]]>
Can she buy a rental house or get a mortage from me for a percentage of ownership in my home and still qualify? I understand that any net rent from the rental or interest from the mortgage would count towards her monthly income.

Any other suggestions?

Thank you.
i]]> http://medicaidsecretsforum.com/showthread.php?tid=86 Mon, 21 Nov 2011 16:16:52 +0000 http://medicaidsecretsforum.com/showthread.php?tid=86 My mother (and family) live in Nebraska. My mother just moved into the local rest home and will need Medicaid probably after 1 1/2 years.
1) Several years ago (2006) my mother and I mortgaged her house to get me out of deep water in which I have been paying monthly payments towards that mortgage loan. The house is in her name and the mortgage is in her name and I write the checks in my name. When she applies for Medicaid, the fair market value of the house will be real close to the mortgage total and the way I understand this, the difference will be the countable asset net value (only upon her death)? My question is, her house is exempt until death...when that time comes, whatever amount the mortgage is left vs fair market value, that will be used to pay back Medicaid for her stay? Is this a one time look and after that, it's over?
2) During the Medicaid period (whenever she qualifies) until her death, is there an advantage to gifting, selling, etc. it with all of this in mind above to help the cause upon her death?
3) Can we (she) rent the house out and put this away somewhere (trust...) and use this to protect against any plus assets that may be found upon her death? Can she hire (me) as the caretaker of the house to oversee maintenance, paperwork, etc.? I can see this as a $$ amount that could be put in a (family agreed upon trust?)
4) Where can I find out about the Medicaid Annuity? I understand by doing this, she would probably need to apply for Medicaid right away to make it work.
Bottom line is her assets are low ($70kcash plus her house ($60k gross value) and her siblings will not be able to cover any grey area time in between when drawing down assets and taking in the first Medicaid check for the rest home. (less her SS) Sorry this is lengthy...I'd love to talk on the phone with someone.]]> My mother (and family) live in Nebraska. My mother just moved into the local rest home and will need Medicaid probably after 1 1/2 years.
1) Several years ago (2006) my mother and I mortgaged her house to get me out of deep water in which I have been paying monthly payments towards that mortgage loan. The house is in her name and the mortgage is in her name and I write the checks in my name. When she applies for Medicaid, the fair market value of the house will be real close to the mortgage total and the way I understand this, the difference will be the countable asset net value (only upon her death)? My question is, her house is exempt until death...when that time comes, whatever amount the mortgage is left vs fair market value, that will be used to pay back Medicaid for her stay? Is this a one time look and after that, it's over?
2) During the Medicaid period (whenever she qualifies) until her death, is there an advantage to gifting, selling, etc. it with all of this in mind above to help the cause upon her death?
3) Can we (she) rent the house out and put this away somewhere (trust...) and use this to protect against any plus assets that may be found upon her death? Can she hire (me) as the caretaker of the house to oversee maintenance, paperwork, etc.? I can see this as a $$ amount that could be put in a (family agreed upon trust?)
4) Where can I find out about the Medicaid Annuity? I understand by doing this, she would probably need to apply for Medicaid right away to make it work.
Bottom line is her assets are low ($70kcash plus her house ($60k gross value) and her siblings will not be able to cover any grey area time in between when drawing down assets and taking in the first Medicaid check for the rest home. (less her SS) Sorry this is lengthy...I'd love to talk on the phone with someone.]]> http://medicaidsecretsforum.com/showthread.php?tid=84 Mon, 14 Nov 2011 01:56:55 +0000 http://medicaidsecretsforum.com/showthread.php?tid=84 It very had to explain to family that knows nothing about legal issues and is old school to get them understand the need for planning and structuring way in advance.


.

My mother is stubborn and just doesn't feel they will ever need nursing home care. No matter how much reading material I send her and or websites to review…….explaining the best I can how wrong she is on her thoughts.

I am attempting to structure and protect what little they do have now before the five year look back. They aren't sick or disabled yet but one never knows. It’s smarter to set up now to protect what may or may not happen.

I am so confused on what document to produce in order to protect many case scenario’s in our family.

My mother without listening to me over the years went off anyways and bought insurance policies.

They have Two in her name, with him as beneficiary totaling: 15k
One in his name with her as beneficiary for: 10k
One in her name for 10k with me as beneficiary.
One in her name for 25k going to 2 siblings and one grandchild.

From what I have learned which by the way these are whole life which I suppose that means they have a cash value. And they are in Texas which is community property state, they were purchased during the marriage with joint income, so really I think that medicaid will now add those as accountable assets. The 1,500 limit for insurance I am confused on because I hear didn't things. Is this per policy or not? Or another person state that because they have policies over 1,500 that they automatically wouldn't quality for medicaid if and when they tried to applied.
I don't think that one is correct.
i want to contact the insurance companies firstly because she only listed one person as beneficiary on each policy I think a contingent should be in place and personal information has to be updated on some beneficiaries listed. They are all whole life insurance policies that she obtained through Jcpenny of all places. My little German mama.

Can I have all policies converted to a trust we set up as the beneficiaries ? Or are the policies in the clear because the purchase dates were 10 years ago or so now? From what I am reading on the new rules, I think by leaving insurance for my mom and step dad it will count as an asset for attempting to obtain medicaid. I think we should who them cash out and set up living trusts for each beneficiary. The kids anyways and totally keep them anyway from ownership. I will be the trustee. Please let me know. Each person would obtain let than the limit of 13k if we decided to pay out all at once. I do know that the gift amounts would go under my mom when she passes as the person to tax but they are under that required amount I think.

In 1992 my moms boyfriend, who is now legally her husband bought a house. Small little house worth only 25k right now that they live in. Of course paid off. They went in 2001 I believe to the court house and made their marriage legal and had and informal marriage document back dated to 1990. They never went to add my moms name to the title. Or do a quick deed or warranty deed on that. But legally she is half owner because this is a community property state. I understand if it were separate property with his own separate funds blah blah but it was not. All payments and purchases on home were with joint income from both of them.

I know medicaid is going to total up all items in both their names as their assets regardless if the other person states separate or not for qualifying for medicaid. Correct? So I don't think I need to have them hurry up and do a Warranty deed for that.

But now this house is paid for. They never had children together. My stepfather has no children and my mother has 3 from her prior marriage. She and he both want to leave the house to all of us kids. Which is nice but a headache from what I am learning.

I am going to be the person that has to do all the paper work for both of them concerning their estate and after death and I don't want any additional work is exactly why I am hustling up now to get all their affairs in order to make sure we protect what little asssets they have and supply me with all documents needed.

I think I should have the house set up in a trust too or life estate. But a life estate only will help with avoiding probate if documents are completed correctly it does nothing for protecting against creditors or medicaid asset recovery.

The each have a car which I know they can have one if through medicaid and I heard that you can keep one for the person thats in the nursing home too.....not sure if that was right or not. But thats for married couples of course.

So my mother is stubborn and also states that her cash she can do whatever with. They are both still working so if something should happen and they do the 5 year look back and see they both worked and total up debt and see that they should have had a great deal of cash ...she thinks can say oh well I spent it or gave it away..!
I told her to state she gave out gifts to the kids as long as its under the limits allowable. RIGHT?

I would like to set up an irrevocable trust ...with bypass verbage in there to protect the assets of my mothers heirs. Just in case he remarried if my mother passes first. Since I am now doing documents anyways...what is the best way to have to deed document structured besides the trust name, for the funds to pass to us kids instead of him? Wouldn't that be best anyways for the fact that he may have to qualify for medicaid his self,
so shouldn't my documents be structured with the trust name, which does that have to be a certain name when its irrevocable and out of their hands for now? I will complete a warranty deed, irrevocable estate trust with bypass verb age , pour over wills, and I want to do a post marital agreement to the effect of him stating that at the time of his death the home is given to the named trust in its entirety. Should I put that on the warranty agreement too ?

I understand if I get the agreement matching all estate documents for both of them and signed by both it will be much easier for me. Or course I will have the documents witnessed and notarized for extra precaution.

But he is my issue. I heard that irrevocable trusts should be independently administrator but not by a blood relative or related by marriage. If we are going to have all the policies set up in the trust name, re-titling the house in the trust, the cars do i have to actually open a bank account titled like the trust agreement????? Or is titling their assets good enough. of course after the trust agreement is completed I will submit to the court house with the deed too but not the will. That is now private right?

I thought about if I didn't set up a trust and let it play out but then we lose lots of money in possibly paying for nursing care if needed. My mom is older and currently at the age of 67 just about a month ago went on medicare. She is still working. She got a and b. But seems to think that Medicare will cover her if she has to go in home for adl. I explained that maybe only the first 100 days if she is lucky but if they do pay any more after that its small.

She is now trying to look into ...additional insurance. Although at age 67 she just enrolled in medicare. She thinks medicare will take care of her IF and when she may need Long term nursing care. Although I try to explain that it will not after maybe 100 days.

My mother doesn’t understand all the legal issues and is old school and when I try to explain things she wants to just do regular documents no trust…etc…but her heir which I am one of them have a right to at least respect that the assets be protected. If he I need to restructure all assets or pay them out and take your chances that nothing happens within 5 years.

Please tell me anything that I should do to make this better or if I can be over the irrevocable trust when no cash is really involved yet. Also I would like to set up one of the beneficiaries of maybe all on each having their own life trust accounts? One person is really bad with money and actually my mom strictly stated that she doesn't now want this sister to be able to have the house. Not for us other two to sell it to her because she won't take care of it. So this is why I think I have to redo all they paying out options and just have the house go to one person and give the others more in life insurance of something????? What do you think about all of this. Alot huh? P.S. not that it matters but my step father was in the military 4 years and he obtained a VA loan for the home that is now paid off.
Please help me. In Texas and pulling out my hair.]]> It very had to explain to family that knows nothing about legal issues and is old school to get them understand the need for planning and structuring way in advance.


.

My mother is stubborn and just doesn't feel they will ever need nursing home care. No matter how much reading material I send her and or websites to review…….explaining the best I can how wrong she is on her thoughts.

I am attempting to structure and protect what little they do have now before the five year look back. They aren't sick or disabled yet but one never knows. It’s smarter to set up now to protect what may or may not happen.

I am so confused on what document to produce in order to protect many case scenario’s in our family.

My mother without listening to me over the years went off anyways and bought insurance policies.

They have Two in her name, with him as beneficiary totaling: 15k
One in his name with her as beneficiary for: 10k
One in her name for 10k with me as beneficiary.
One in her name for 25k going to 2 siblings and one grandchild.

From what I have learned which by the way these are whole life which I suppose that means they have a cash value. And they are in Texas which is community property state, they were purchased during the marriage with joint income, so really I think that medicaid will now add those as accountable assets. The 1,500 limit for insurance I am confused on because I hear didn't things. Is this per policy or not? Or another person state that because they have policies over 1,500 that they automatically wouldn't quality for medicaid if and when they tried to applied.
I don't think that one is correct.
i want to contact the insurance companies firstly because she only listed one person as beneficiary on each policy I think a contingent should be in place and personal information has to be updated on some beneficiaries listed. They are all whole life insurance policies that she obtained through Jcpenny of all places. My little German mama.

Can I have all policies converted to a trust we set up as the beneficiaries ? Or are the policies in the clear because the purchase dates were 10 years ago or so now? From what I am reading on the new rules, I think by leaving insurance for my mom and step dad it will count as an asset for attempting to obtain medicaid. I think we should who them cash out and set up living trusts for each beneficiary. The kids anyways and totally keep them anyway from ownership. I will be the trustee. Please let me know. Each person would obtain let than the limit of 13k if we decided to pay out all at once. I do know that the gift amounts would go under my mom when she passes as the person to tax but they are under that required amount I think.

In 1992 my moms boyfriend, who is now legally her husband bought a house. Small little house worth only 25k right now that they live in. Of course paid off. They went in 2001 I believe to the court house and made their marriage legal and had and informal marriage document back dated to 1990. They never went to add my moms name to the title. Or do a quick deed or warranty deed on that. But legally she is half owner because this is a community property state. I understand if it were separate property with his own separate funds blah blah but it was not. All payments and purchases on home were with joint income from both of them.

I know medicaid is going to total up all items in both their names as their assets regardless if the other person states separate or not for qualifying for medicaid. Correct? So I don't think I need to have them hurry up and do a Warranty deed for that.

But now this house is paid for. They never had children together. My stepfather has no children and my mother has 3 from her prior marriage. She and he both want to leave the house to all of us kids. Which is nice but a headache from what I am learning.

I am going to be the person that has to do all the paper work for both of them concerning their estate and after death and I don't want any additional work is exactly why I am hustling up now to get all their affairs in order to make sure we protect what little asssets they have and supply me with all documents needed.

I think I should have the house set up in a trust too or life estate. But a life estate only will help with avoiding probate if documents are completed correctly it does nothing for protecting against creditors or medicaid asset recovery.

The each have a car which I know they can have one if through medicaid and I heard that you can keep one for the person thats in the nursing home too.....not sure if that was right or not. But thats for married couples of course.

So my mother is stubborn and also states that her cash she can do whatever with. They are both still working so if something should happen and they do the 5 year look back and see they both worked and total up debt and see that they should have had a great deal of cash ...she thinks can say oh well I spent it or gave it away..!
I told her to state she gave out gifts to the kids as long as its under the limits allowable. RIGHT?

I would like to set up an irrevocable trust ...with bypass verbage in there to protect the assets of my mothers heirs. Just in case he remarried if my mother passes first. Since I am now doing documents anyways...what is the best way to have to deed document structured besides the trust name, for the funds to pass to us kids instead of him? Wouldn't that be best anyways for the fact that he may have to qualify for medicaid his self,
so shouldn't my documents be structured with the trust name, which does that have to be a certain name when its irrevocable and out of their hands for now? I will complete a warranty deed, irrevocable estate trust with bypass verb age , pour over wills, and I want to do a post marital agreement to the effect of him stating that at the time of his death the home is given to the named trust in its entirety. Should I put that on the warranty agreement too ?

I understand if I get the agreement matching all estate documents for both of them and signed by both it will be much easier for me. Or course I will have the documents witnessed and notarized for extra precaution.

But he is my issue. I heard that irrevocable trusts should be independently administrator but not by a blood relative or related by marriage. If we are going to have all the policies set up in the trust name, re-titling the house in the trust, the cars do i have to actually open a bank account titled like the trust agreement????? Or is titling their assets good enough. of course after the trust agreement is completed I will submit to the court house with the deed too but not the will. That is now private right?

I thought about if I didn't set up a trust and let it play out but then we lose lots of money in possibly paying for nursing care if needed. My mom is older and currently at the age of 67 just about a month ago went on medicare. She is still working. She got a and b. But seems to think that Medicare will cover her if she has to go in home for adl. I explained that maybe only the first 100 days if she is lucky but if they do pay any more after that its small.

She is now trying to look into ...additional insurance. Although at age 67 she just enrolled in medicare. She thinks medicare will take care of her IF and when she may need Long term nursing care. Although I try to explain that it will not after maybe 100 days.

My mother doesn’t understand all the legal issues and is old school and when I try to explain things she wants to just do regular documents no trust…etc…but her heir which I am one of them have a right to at least respect that the assets be protected. If he I need to restructure all assets or pay them out and take your chances that nothing happens within 5 years.

Please tell me anything that I should do to make this better or if I can be over the irrevocable trust when no cash is really involved yet. Also I would like to set up one of the beneficiaries of maybe all on each having their own life trust accounts? One person is really bad with money and actually my mom strictly stated that she doesn't now want this sister to be able to have the house. Not for us other two to sell it to her because she won't take care of it. So this is why I think I have to redo all they paying out options and just have the house go to one person and give the others more in life insurance of something????? What do you think about all of this. Alot huh? P.S. not that it matters but my step father was in the military 4 years and he obtained a VA loan for the home that is now paid off.
Please help me. In Texas and pulling out my hair.]]> http://medicaidsecretsforum.com/showthread.php?tid=83 Sat, 12 Nov 2011 16:04:21 +0000 http://medicaidsecretsforum.com/showthread.php?tid=83
My mother just entered a rest home facility (Nebraska) and has approximently a year and 3 months of cash assets left to pay for the cost of living there if everything stays constant. After this, she has an auto, house contents (minimal) and a house on 1.5 acres that is mortgaged.

When Medicaid looks at these assets, I have been told that whatever the difference between the house/acreage value vs the mortgage total is will be considered +assets that will be used against her qualification. Example $60,000 value vs $50,000 mortgage means there is $10,000+ ($4000 is considered the max amount one can have in Nebraska) so, too much to qualify.

Let's say it's even money ($60k vs $60k)...meaning $0. So she could qualify.

My question is: How often do they look at this situation? 6 months, one year, etc.? Obviously, as the mortgage gets paid down, the net goes up so that will probably disqualify her, right?

....And, when she dies, do I understand it that the house would need to be sold and any excess would need to be used up first before going back on Medicaid?

Is it considered a gift if I were to buy the house and take over the mortgage payments?

Lot of questions. Thanks for any response.

Bill]]>
My mother just entered a rest home facility (Nebraska) and has approximently a year and 3 months of cash assets left to pay for the cost of living there if everything stays constant. After this, she has an auto, house contents (minimal) and a house on 1.5 acres that is mortgaged.

When Medicaid looks at these assets, I have been told that whatever the difference between the house/acreage value vs the mortgage total is will be considered +assets that will be used against her qualification. Example $60,000 value vs $50,000 mortgage means there is $10,000+ ($4000 is considered the max amount one can have in Nebraska) so, too much to qualify.

Let's say it's even money ($60k vs $60k)...meaning $0. So she could qualify.

My question is: How often do they look at this situation? 6 months, one year, etc.? Obviously, as the mortgage gets paid down, the net goes up so that will probably disqualify her, right?

....And, when she dies, do I understand it that the house would need to be sold and any excess would need to be used up first before going back on Medicaid?

Is it considered a gift if I were to buy the house and take over the mortgage payments?

Lot of questions. Thanks for any response.

Bill]]>