Page 26 - Bancroft Law - Example Legal Planning Guide

FINANCIAL ELIGIBILITY – MARRIED APPLICANT. For married couples, assets of both spouses are counted, regardless of which spouse is owner. Transferring property from the “institutionalized spouse” to the healthy, “community spouse” does not reduce the amount of countable assets. Before a married applicant financially qualifies for Medicaid, the combined non-exempt countable assets of the couple must fall below a specified protected amount. That amount consists of the institutionalized spouse’s $8,000 (or $2,400) “resource limit” and the community spouse’s “community spouse resource allowance” (CSRA). The CSRA is one-half of the value of countable assets as existed on the first day of institutionalization that resulted in a continuous stay in a facility (or multiple facilities) of 30 days or more. There is a floor and ceiling to the CSRA.
EXAMPLE 1. John enters Happy Valley Nursing Home on April 9 and remains there permanently. The combined countable non-exempt assets of John and his wife, Mary, on April 9, totaled $200,000. Half of that amount, $100,000, is protected for Mary. John’s resource limit is $8,000. John will qualify for Medicaid when the $200,000 shrinks down to $108,000.
EXAMPLE 2. Same as Example 1 except that the combined countable non-ex-empt assets amount to $300,000. Mary cannot keep one-half, $150,000, because that exceeds the legal maximum of $126,420. John qualifies when the $300,000 shrinks down to $134,420 ($126,420 + $8,000 = $134,420).
EXAMPLE 3. Same as Example 1 except that the combined countable non-ex-empt assets amount to $40,000. Mary keeps $25, 284, the minimum amount protected for her, even though it is more than one-half. John qualifies when the $40,000 shrinks down to $33,284 ($25,284 + $8,000 = $33,284).
FINANCIAL ELIGIBILITY - EXEMPT ASSETS. The following assets accessible to an applicant or spouse do not count in determining how much an applicant or a married couple can keep and still qualify for Medicaid.
• Home – if spouse occupies*
• One motor vehicle – unlimited value
• Furnishings & household goods – unlimited value
• Prepaid funeral & burial – reasonable amount limitation.
• Spouse’s IRA, 401(k), etc.- unlimited value
• Clothing, jewelry and personal effects – unlimited
value
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