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What is Medicaid’s Asset Split? – Mainline media news

If your spouse needs to enter a nursing home, the first step in the Medicaid application process is collecting financial documents. A resource assessment must be submitted to the local county support agency (CAO) that provides a “snapshot” of the property available to the couple as of the date the spouse was admitted to the facility. This is when an “asset split” occurs. Asset splits are federal and state rules aimed at preventing other spouses from becoming poor when a spouse living in the community needs long-term care in a skilled care facility. Under federal and state regulations, community-dwelling spouses are allowed to keep half of their countable assets up to $ 130,380 in 2021 and a minimum of $ 26,076 in 2021.

When an asset split occurs, the applicant’s spouse (the spouse in need of skilled care) must use up half of the resources counted. The applicant’s spouse may have countable assets in his name of $ 2,400 or less if his total income is $ 2,382 or more per month. If the applicant’s spouse’s total income is less than $ 2,382 per month, the countable assets may be less than $ 8,000.

Countable assets typically include all property except (1) personal property such as clothing, furniture, and jewelery. (2) One car. (3) Applicant’s primary residence (in Pennsylvania, with capital not exceeding $ 603,000). (4) Assets that are considered inaccessible for some reason, such as spouse’s IRA. If an asset is countable, it doesn’t matter if it’s just the name of the spouse in the community, it’s important to note that it’s still a countable asset.

For example, if a spouse owns $ 200,000 in resources that the couple counts on the day they enter the nursing home, the spouse in the community is allowed to hold $ 100,000 and the remaining $ 100,000 is $ 8,000 or $ 2,400. Should be used according to. The income of the applicant’s spouse.

The most common mistake people make when applying for Medicaid is the timing of spending. Unfortunately, the rules for Medicaid are complex, and there are many misconceptions about the best way to reduce spending and when to reduce it. The most important thing to remember is that spending will not begin to decline until after the date of admission to a skilled nursing facility. Before you start the process, it’s a good idea to submit a resource assessment and wait until you have a clear understanding of how much you need to spend. By spending before the enrollment date and before the snapshot date, you can unintentionally reduce the amount of assets that your community’s spouse is allowed to hold. In addition, there is a lot of confusion about what spending can be incurred. Spending at the wrong cost or at the wrong time can prevent the retroactive application of Medicaid benefits. Therefore, it is very important to work with an experienced and qualified elder lawyer in the Medicaid application and spending process to ensure that you are not only following complex rules, but also maximizing the amount. Of assets that the spouse of the community is allowed to hold.

The legal advice in this column is by nature general. Talk to a lawyer for advice that suits your particular situation.

Rebecca A. Hobbs, Esquire, is a Pennsylvania business license and is accredited by the Pennsylvania Supreme Court as an elder lawyer by the National Elders Law Foundation. She is the principal of the law firms of O’Donnell, Weiss & Mattei, PC, 41 High Street, Pottstown, and 347 Bridge Street, Phoenix Building, 610-323-2800, www. owmlaw.com. You can contact Ms. Hobbs at rhobbs@owmlaw.com.

What is Medicaid’s Asset Split? – Mainline media news

Source link What is Medicaid’s Asset Split? – Mainline media news

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