Misconceptions About Medicaid Long-Term Care Assistance

A recent government study estimates that someone over 65 today has roughly a 70 percent chance of needing some kind of long-term care at the end of their life. This can be an extremely rude awakening if a person has not done their research about how best to cover these costs. Medicaid is the answer that most people in Westchester and Putnam County find. However, there are so many myths about obtaining long-term care via Medicaid that it can turn some people away. The right attorney may be able to help you clarify your options.

Don’t I Have Too Many Assets?

By far the most enduring misconception about Medicaid for long-term care in New York is believing that your income level and/or owned assets disqualify you from Medicaid permanently. In reality, while Medicaid is means-tested, you can still structure your estate so as to either ‘spend down’ enough to qualify or to protect your assets so they will not be counted against the limit by Medicaid.

For example, you can create a Medicaid asset protection trust (MAPT), which places your assets in trust, removing them from your estate (and thus, from the assets that can be counted in Medicaid’s means test). This document should be made with the help of the right attorney. Alternatively, you might transfer certain assets to your spouse without penalty (though transfers to other family or friends may trigger a penalty period in which Medicaid will not pay for care).

Will They Take My House?

Another common fear not based in fact is the fear that if only one spouse in a marriage seeks Medicaid benefits for long-term care, the program will take the couple’s home to help pay for that care. In reality, Medicaid exempts certain assets from the means test, and in all but the rarest circumstances, a person’s home is not counted as an asset as long as they or their spouse (or a disabled child) are still living there. So, if one spouse moves to a nursing home, the other will usually be able to keep the marital home.

If neither spouse intends to live in the home, it still may be possible for one of them to keep it using a procedure known as spousal refusal. New York is one of only three states that recognize this action.  In short, state law holds that spouses have a legal duty to support one another, but a spouse can ‘refuse’ to support their spouse if they need long-term medical care. By this action, the well spouses’ finances are effectively severed from the applicant’s for Medicaid purposes, meaning that none of the healthy spouse’s assets can be counted by Medicaid for means test purposes.

Contact A Putnam County Medicaid Planning Attorney

While the process of seeking long-term care can be intimidating and confusing, the right attorney on your side can make all the difference. A Putnam County Medicaid planning attorney from Meyer & Spencer, PC will work with you to protect your assets and place your family in the best possible position so that your loved one can get the care they need. Call or text  our office today at (845) 628-0009 to schedule a consultation.

Source:

acl.gov/ltc/basic-needs/how-much-care-will-you-need