Does New Jersey’s Medicaid Penalty Apply Only to Gifts?
When I define the Medicaid penalty for our elder law clients, they usually think only in terms of gifts. However, the penalty is triggered by much more than simply gifts. It is a transfer for less than fair value that causes a penalty. Fair value is not measured subjectively, but
How is New Jersey’s Medicaid Penalty Calculated?
In New Jersey, Medicaid calculates the transfer penalty as follows: The total amount transferred for less than fair value in the five years immediately preceding the application divided by the average monthly cost of nursing home care in New Jersey. The quotient is the number of months the Medicaid applicant
New Jersey’s Medicaid Penalty and Look Back – Not the Same Thing
Assets must be spent down to necessary limits before New Jersey Medicaid eligibility is achieved. That means that assets have to be spent for product or service of equal value. New Jersey will not take the applicant’s word for it. They require 5 years of financial records as part of
How Does New Jersey Medicaid Value Real Estate?
New Jersey only counts the equity value of real estate as an asset, so that one must subtract all encumbrances (ie. mortgages) first. The value of real property is determined by taking the tax assessed value and multiplying by the reciprocal of the assessment ratio as recorded in the most
How Does New Jersey Medicaid Treat Outstanding Checks?
Assets must be under the required levels as of the first moment of the first day of the month in which Medicaid eligibility is desired (and maintained each and every month thereafter). The applicant must be below $2000 for Medicaid Only and $4000 for Medically Needy Medicaid. This is best
How Does New Jersey Medicaid Treat Assets Held in Joint Accounts?
When a savings or checking account is held by the Medicaid applicant with other parties, all funds in the account are considered the applicant’s so long as he or she has unrestricted access to the funds regardless of their source. When parent and child, for example, are co-owners New Jersey
Does New Jersey Medicaid Allow the Healthy Spouse to Keep the Maximum CSRA Every Time?
So what happens if the couple has less than $227,280 in assets? Does the community spouse still get to keep $113,640? The answer is no. For example, if on the snapshot date the couple has $140,000, then the community spouse may keep only $70,000, plus the institutionalized spouse’s $2,000/$4,000. The
How Does New Jersey Calculate Medicaid’s Snapshot Amount?
Medicaid divides the countable assets on the snapshot date by two, allowing the Community Spouse to keep one half of the overall countable assets up to the maximum (in 2012) of $113,640. The institutionalized spouse (Medicaid applicant can keep no more than $2,000 or $4,000, depending on the Medicaid program
How Does New Jersey Medicaid Treat a Married Couple’s Assets?
Medicaid combines both spouses’ assets together in determining eligibility. The healthy or community spouse is allowed to keep a portion of the countable assets after the couple spends down for Medicaid eligibility. This division of assets is known as the Community Spouse Resource Allowance (CSRA) and the maximum amount in
When Does New Jersey Treat an Asset as “Inaccessible” for Medicaid Purposes?
In order to be considered a countable asset in the determination of Medicaid eligibility, it must be “available.” An asset is considered available to an individual when he/she has the right, authority, or power to liquidate it, or at least his or her share of it. Assets may also be