{"id":3306,"date":"2017-06-05T13:56:47","date_gmt":"2017-06-05T17:56:47","guid":{"rendered":"http:\/\/www.lawofficeresponse.com\/estrada\/?p=3306"},"modified":"2022-06-05T06:36:40","modified_gmt":"2022-06-05T10:36:40","slug":"the-top-13-misconceptions-about-nursing-homes-and-your-assets","status":"publish","type":"post","link":"http:\/\/www.new.lawofficeresponse.com\/dougnewbornlawfirm\/the-top-13-misconceptions-about-nursing-homes-and-your-assets\/","title":{"rendered":"13 Misconceptions About Nursing Homes And Your Assets"},"content":{"rendered":"\n

Knowing the truth about the following misconceptions could be highly beneficial and educating on your or your family member’s situation…<\/span><\/i><\/p>\n\n\n\n

Misconception No. 1: \u201cIf I Put My Assets In Joint Names With My Children, The Assets Will Be Exempt For Nursing Home Purposes.\u201d<\/span><\/h4>\n\n\n\n

The Truth: You are considered the owner of any assets that you put in joint names with anyone, even assets that were put in joint names decades ago. Certain creations of joint assets may result in divestment’s, disqualifying you from receiving Medicaid benefits for a period of time.<\/span><\/p>\n\n\n\n

Misconception No. 2: \u201cIf I Don’t Transfer Assets Five Years Before Entering A Nursing Home, I Can’t Do It At All.\u201d<\/span><\/h4>\n\n\n\n

Not true. The five-year rule is a look-back rule. It has nothing to do with when a person enters a nursing home. It has to do with when a person applies for Medicaid. There is a question on the Medicaid application that reads, “Have you transferred any assets to an individual in the last five years?” If a transfer has taken place during that period of time, there will be a period of time the Medicaid applicant is not eligible for Medicaid.  The penalty period can be longer or shorter than five years.<\/p>\n\n\n\n

Misconception No. 3: \u201cI Can’t Transfer Assets After I Am Already In A Nursing Home.\u201d<\/span><\/h4>\n\n\n\n

Again, the same rule applies. Neither the look-back nor the penalty period has anything to do with when a person enters a nursing home. Under the look back rule, all transfers and financial information must be disclosed to the Medicaid agency five years prior to the date of the Medicaid application.  The penalty period is a completely different rule.  The penalty period is calculated by dividing the amount of the transfer by the State Divisor Rate.  For 2016, the State Divisor Rate in Colorado is $7,563.00.  There are complicated rules on when the penalty period begins.<\/span><\/p>\n\n\n\n

Misconception No. 4: \u201cYou May Not Apply For Medicaid Within Five Years Of Making A Gift.\u201d<\/span><\/h4>\n\n\n\n

As indicated above, the five year look-back has nothing to do with the penalty.  A penalty is calculated by dividing the value of the assets gifted by the State Medicaid Divisor.  This calculation results in a number of months for which a person making a transfer is ineligible for Medicaid.  The penalty period does not apply to transfers between spouses.<\/span><\/p>\n\n\n\n

Misconception No. 5: \u201cI Can Give Away $14,000 (Previously $10,000) Per Person Per Year Without Any Penalty.\u201d<\/span><\/h4>\n\n\n\n

The Truth: This is a Federal gift tax limitation. It has nothing to do with Medicaid eligibility. Medicaid gifting rules are completely different. All gifts that are divestments, no matter what amount, will create a penalty.<\/span><\/p>\n\n\n\nGOT QUESTIONS… JUST CLICK HERE!<\/a>