Gifting and the Medicaid Penalty (Part 2)
Last week I was telling you about a recent New Jersey court case which resulted in a 10 and ½ year Medicaid penalty. The family tried to navigate New Jersey’s Medicaid rules on their own and then tried to fix their mistake. It didn’t work. Let’s examine why. To
Gifting and the Medicaid Penalty
Once again, a recent New Jersey court case has highlighted the dangers of do it yourself Medicaid planning. In the case in question, C.W. v. New Jersey Division of Medical Assistance and Health Services, 90 year old C.W. moved into a nursing home in 2007. She then transferred her
Family Caregiver Agreements – Acceptable? (Part 2)
Last week we were discussing family caregiver agreements in light of a recent New Jersey Appellate court decision, E.R. v. DMAHS. In that case, Mom and Daughter entered into a caregiver agreement while Mom was living in Daughter’s home. Mom eventually entered a nursing home and applied for Medicaid.
Family Caregiver Agreements – Acceptable?
When having a conversation about long term care and qualifying for Medicaid, every so often the topic turns to paying a family member to care for Mom or Dad. Is it a permitted Medicaid spend down? In many cases the discussion occurs after the services have already been provided
Qualified Income Trusts Revisited (Part 2)
Last week I said I would share with you my experiences filing applications with Qualified Income Trusts (Miller Trusts) which are required when an applicant has income over Medicaid’s strict income cap ($2199 for 2015). The rules are very technical. Income can’t be split. If I receive $1500 from
Qualified Income Trusts Revisited
It has been 7 months now since New Jersey eliminated its Medically Needy Medicaid program and as a result brought back Miller trusts. I detailed the changes in my posts of October 13 and October 20, 2014. The changes actually went into effect December 1, 2014. How have these changes
Planning Before the First Spouse Dies (Part 2)
Last week I was telling you about Mary’s call. Her mom is in a nursing home paying $11,000 per month and her sister, Terry is in a group home. Mary doesn’t want to spend down all of Mom’s assets towards her care. She wants to be able to save
Planning Before the First Spouse Dies
Mary called because her mom was in a nursing home paying $11,000 per month. Her sister, Terry, disabled and living with Mom for many years, had her own health problems and was now living in a group home. I asked about her mom’s finances. Mary told me she owned
The Problem with IRAs
IRAs, or any retirement accounts really, have always been a problem when it comes to long term care. They are a great vehicle for accumulating wealth. You can put away savings in an account which will earn interest on a tax deferred basis. No income tax is paid on
Dangers of the Due on Transfer Clause (Part 2)
Last week I was telling you about George’s problem. He had transferred his home to a trust to protect it but then received a letter from the bank referring to something called the due on transfer clause. A transfer of title without permission could trigger the bank’s entitlement to