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I agree with Camilla. The government will come after any assets that the person has after they die. There is no such thing as an inheritance when someone is on Medicaid. One way to buy down is to put money into an irrevocable funeral trust. This money is not considered when the state calculates your need but this must be done before applying for Medicaid. There are many programs available to people to keep them at home. I would contact the local Area Agency on Aging. I would not recommend that you do a reverse mortgage. By getting what you feel is a "reasonable" amount of money to live on, may not be what the state sees as reasonable. When some one goes on medicaid - the person in the nursing home is usually only given a small amount of money (less than $50) per month for their personal use, the rest of the money is used by the nursing home for the person's care. The state will not bankrupt a spouse but it will also limit the amount of money that is available to the person to meet their needs. The amount that the state might let the spouse keep may be as little as $6000. The amount of money that you can give away is limited by several things. You can give up to 10000 per year per individual (IRS) without having to pay tax. Most states will go back 3 to 5 years to determine if the person has bought down their money by giving it away. If this is so, the state can ask the person who was given the money to give the money back or they can defer when the person applying for medicaid becomes eligible. Believe me they go back and want an explanation of evey dollar spent. I am currently going through this with my mother-in-law. Before you apply or even think you might be needing Medicaid, Learn as much as you can. It will make the process smoother and less of a major hassle. Maureen Allen ADate: Sat, 14 Mar 1998 13:13:54 EST >From: Ken Becker <<[log in to unmask]> >Subject: Re: Medicaid Community Attendant Services Act > >Debbie, I got an idea, do not know if it would work in these cases, but here >it is: Assumming the people involved have a home with a mortgage balance, if >they paid the balance off to the extent of the cash they want to "spend down" >let's say the balance is $98000.00, the folks have $100,000 in the bank they >send that to the mortgage holder, and have $2000 left over, allowing Medicaid >to kick in for the nursing home care. NOW, in order to have some living money, >take out a REVERSE mortgage on the paid off house, which would be set up to >supply income on a monthly basis. I don't know if this is feasible, or legal, >I look to the experts in those fields to answer that. I do not think it is >right for people who work all their lives to be punished for saving and >investing to assure their future, and then not to be able to get the benefits >that are taken for granted by people who do nothing to help themselves all >their lives, and just expect handouts! By the way I consider myself a >Liberal, and have no problem with government helping those who do need help. >I am also not talking about the priveledged few who can well afford whatever >care they need, and are trying to shelter their fortunes, and take advantage >of loopholes. I hope I have not alienated too many people today, in trying to >be helpful! [log in to unmask] > >------------------------------ -- > >Date: Sat, 14 Mar 1998 17:59:13 -0500 >From: "Camilla H.Flintermann" <<[log in to unmask]> >Subject: Medicaid > >There are very strict and clearly defined guidelines re: spending down, >eligibility for Medicaid for NH, and they are changed often, so it would be >wise to get the latest info. Check with a social worker in a senior center >or organization serving seniors--they probably know, and it's cheaper than >an atty! Basically, the at-home spouse of a couple is allowed to keep the >residence, one car, and other assets in her/his name--the amounts were >revised since I read them. Also, I believe that now when a person whose NH >care was covered by Medicaid dies, the government will try to recover the >expenses paid from her/his estate (if any). It gets pretty complex, and >the gap between "giving away assets" and claiming aid gets longer all the >time. While it may seem unfair that there are these restrictions, remember >the enormous cost involved to society; if folks didn't use some of their >own assets we'd all pay more in taxes, after all! > >We feel very lucky that we had bought long term care insurance for BOTH of >us a short time before Peter had any idea he had PD! While it is too late >for someone already diagnosed, well-spouses should consider getting LTC >ins. for themselves, in case of future need....just a thought. It's not >cheap, but could be well worth it, and the newer policies now cover in-home >care as well as NH. There are many published guidelines for how to >evaluate LTC policies--your local Council on Aging would probably have them. > > Camilla Flintermann, CG for Peter 79/8 > Oxford, OH > [log in to unmask] > * * * * * * * * * * * * * * * * * > * Ask me about the CARE list for* > * Parkinson's caregivers ! * > * * * * * * * * * * * * * * * * * <smaller>******************************************************** Maureen Allen, CG for Florence, 83/10+, James 73/1, Pittsburgh PA [log in to unmask] ********************************************************</smaller>