Myth #1: If either my spouse or I go into a nursing home, the State of Maryland will take away our assets.
Truth: No, the State of Maryland does not take your assets. The nursing home will charge you a fee for residency and other services. Medicaid will not pay anything towards these fees until you meet the asset/income qualifications. Often this process is referred to as “spending down” your assets to qualify for these Medicaid payments to the nursing home on your behalf.
Myth #2: I have to transfer assets out of my name at least 5 years before entering a nursing home.
Truth: There is a 5 year look-back rule to qualify for Medicaid. The Medicaid application asks if you have transferred any assets within the last five years. If the answer to that question is yes, then those assets are counted towards your income/asset limits to qualify. This may make you ineligible for Medicaid for that 5 year period. This time period does not relate at all to when you enter a nursing home.
Myth #3: If I title my assets jointly with my adult children, then those assets are exempt for nursing home purposes.
Truth: No, the nursing home facility and Medicaid will look at all your assets whether they are titled individually or jointly. You will be obligated to pay your nursing home bills from those assets until such time that you qualify for Medicaid to take over.
Myth #4:If either of us go into a nursing home, my spouse and I lose our home.
Truth: During your lifetime, your primary residence is considered an exempt asset. There are certain requirements regarding how it is titled and used for it to qualify for this exemption. A few other assets that are considered exempt include one vehicle, certain pre-paid funeral costs and certain types of life insurance policies.
Myth #5: I am too old for asset protection planning. My only choice is to spend down my assets.
Truth: Medicaid planning, asset protection planning and long-term care planning can be done at any point in your life. Part of this planning may include whether long-term care insurance would be beneficial for your situation as well as implementing certain gifting strategies and the use of living trusts. An experienced elder law attorney can assess your situation and help you create a plan that best benefits you and your spouse.
For more information on Medicaid planning, asset protection strategies or long-term care needs contact the knowledgeable attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
