Many individuals believe that adding a family member or loved one on a bank account will assist in protecting assets from Medicaid. However, unfortunately, this is untrue. However, adding a person as co-owner of a bank account will assist in avoiding probate. Continue reading “A Joint Bank Account Does Not Protect Your Assets When Applying for New Jersey Medicaid”
Tag: Medicaid eligibility
Options to Qualify For Government Benefits Without Leaving Yourself Impoverished
In New Jersey, many residents rely on government benefits for financial assistance. However, in order to qualify for government benefits, there is an income and asset limit. Utilizing a special needs trust may allow a person to qualify for government benefits without leaving them impoverished. A special needs trust may be executed by a person prior to becoming disabled, or by a qualifying family member on a person’s behalf after they have become disabled or otherwise qualified for government benefits. Utilizing a special needs trust may allow a person to qualify for government benefits without leaving them impoverished. A special needs trust may be executed by a person prior to becoming disabled, or by a qualifying family member on a person’s behalf after they have become disabled or otherwise qualified for government benefits. Continue reading “Options to Qualify For Government Benefits Without Leaving Yourself Impoverished”
Utilizing A Pre-Paid Irrevocable Funeral Contract (or Trust) To Qualify For Chronic Care Medicaid
When an individual is entering a skilled nursing facility, it may be necessary to complete an application for Chronic Care Medicaid. A skilled nursing facility may cost anywhere from $15,000.00 to $25,000 per month, which can quickly lead to the depletion of available resources. Medicaid is a need-based program that assists with the cost of care in a skilled nursing facility. To qualify for Medicaid, an individual must meet certain asset and income requirements. Continue reading “Utilizing A Pre-Paid Irrevocable Funeral Contract (or Trust) To Qualify For Chronic Care Medicaid”
Transfers of Assets Affect Medicaid
If a Medicaid applicant is married and his or her spouse resides in the primary residence, then the home is an exempt resource. The spouse is entitled to keep resources of $120,900. The applicant must have less than $2,000. Any additional resources above these limits must go toward the cost of his or her nursing home care. If the applicant has a spouse, he or she may retain a portion of the other spouse’s income under certain circumstances.
Funding An Irrevocable Trust Sooner Than Later
An asset is owned by a trust once it is transferred into the trust that was created. This is known as funding the trust. The transfer of assets into a trust can occur in a number of ways depending on the type of asset. For Medicaid purposes the five-year look back period begins one month after an asset is placed in the trust. This means that if a property deed is transferred into the trust in December, the five-year look back period begins in January and ends five years from that date. Every time a new asset is placed in the trust a new five-year look back period will begin for that specific asset, not for all the assets in the trust.
Continue reading “Funding An Irrevocable Trust Sooner Than Later”
