What to do if you are over the Medicaid limit?

What to do if you are over the Medicaid limit?

There is a simple option called an irrevocable funeral trust. This is essentially prepaying a funeral and all the associated expenses. The family simply allocates the amount of money by which they are over the Medicaid limit to the irrevocable funeral trust.

When is Medicaid planning necessary and what assistance options exist?

When is Medicaid Planning Necessary and What Assistance Options Exist? To determine one’s Medicaid eligibility or to find a Medicaid planner, please use the free service provided by the American Council on Aging.

How is the Medicaid penalty calculated for nursing homes?

Medicaid calculates the penalty by dividing the amount transferred by what Medicaid determines is the average price of nursing home care in your state. 12  For example, suppose Medicaid determines your state’s average nursing home costs $6,000 per month, and you had transferred assets worth $120,000.

How are penalties calculated for Medicaid asset transfers?

Calculated penalties were rounded down so that the penalty period was shorter. Using the half a loaf strategy, individuals often made gifts to family members every month or every other month, depending upon state law.

Are there laws about family planning for Medicaid?

In some states, there are laws that limit who can provide legal advice on Medicaid Planning, but in no states are there any laws about families engaging in Medicaid Planning to qualify a loved one for their state’s Medicaid program.

When do you become eligible for Medicaid spend down?

If the applicant’s income or countable assets exceed Medicaid’s financial limits in their state, it is possible to become eligible by “spending down” one’s income or assets to the point where they become financially eligible.

When is Medicaid Planning Necessary and What Assistance Options Exist? To determine one’s Medicaid eligibility or to find a Medicaid planner, please use the free service provided by the American Council on Aging.

There is a simple option called an irrevocable funeral trust. This is essentially prepaying a funeral and all the associated expenses. The family simply allocates the amount of money by which they are over the Medicaid limit to the irrevocable funeral trust.