Changes in Medicaid Law
From DRA of November 1, 2009

  1. Increases the lookback period to 5 years.
  2. Creates a penalty for parts of a month.
  3. Includes all gifts that are made during the 5 years. There is a de minimus amount of $1,200 per year that can be gifted without penalty.
  4. Changes the start date of the penalty period for gifts made after November 1, 2009. Previously, the penalty would start the month after the gift is made. Now, the penalty does not start until, the donor is in the nursing home, out of money and otherwise eligible for Medicaid except for the gift.
  5. Provides for limited hardship waivers - for situations where the penalty would endanger the applicant’s health, life or necessities of life.
  6. Changes annuities. An annuity purchased by an applicant or recipient or the spouse must name the State of Indiana as the beneficiary of the annuity after the purchaser unless it meets certain exceptions.
  7. Changes the use of Resources (assets) to provide income.
  8. A person with a home that has equity of $500,000 or more cannot receive Medicaid.

Medicaid is an ever-changing program, with the frequent application of new regulations and new interpretations of existing regulations. Changes to existing regulations may occur without notice. If you have any questions, please contact us.

Wills - Living Trusts - Assets that are Joint or Have Benefits

Wills:

Legal documents in which you set out what you want to happen to the assets in your name at your death.

Trusts:

Legal documents in which you set out what happens during your lifetime and what you want to happen to the assets in the trust name at your death.

ASSETS THAT ARE JOINT OR HAVE BENEFICIARIES:

Bank - Joint or P.O.D.
Stock - Joint or T.O.D.
Insurance, Annuities, IRA - beneficiary
Property - Joint with rights of survivorship or life estate

ADVANTAGES:
WILL ASSETS THAT ARE JOINT OR HAVE BENEFICIARY TRUSTS

  1. You have control over all your assets
  2. Easiest to administer during your lifetime
  3. Inexpensive to create
  4. Takes care of the “what ifs"
  5. Provides for special needs but not for spouse
  6. Easy to prepare for nursing home and Medicaid
  7. Avoids probate

DISADVANTAGES:

WILL ASSETS THAT ARE JOINT OR HAVE BENEFICIARY TRUSTS

  1. Goes through probate, lose some control, trust owns everything
  2. Doesn’t provide for “what ifs,” married couple can’t get Medicaid
  3. Creditors, doesn’t provide for special needs
info@davidpwilsonlaw.com