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Can A Married Couple Go Through Division Of Assets, Qualify For Medicaid And Still Keep Everything?  The Answer May Surprise You…

Mr. and Mrs. Jackson were high school sweethearts, living in St. Louis their entire adult lives.  Two weeks ago they celebrated their 51^st wedding anniversary.  Yesterday Mr. Jackson, who has been diagnosed with Alzheimer’s disease, wandered away from home.  Hours later he was found sitting on a street curb talking incoherently.  He was taken to a hospital where he is being treated for dehydration.

Mrs. Jackson comes to see you after their family doctor tells her she needs to place Mr. Jackson in a nursing home.  She tells you they both grew up during the Depression and have always tried to save something each month. During their lifetime, the Jacksons have accumulated the following assets.

Mr. Jackson receives a Social Security check for $800 each month; Mrs. Jackson receives Social Security each month also, in the amount of $300.  The cost of Mr. Jackson’s care is in excess of $3,500 a month.  Mrs. Jackson is gravely concerned because she does not know how she can pay for Mr. Jackson’s care, and still pay her bills.  At $3,500 a month, the Jacksons ’ life savings will be exhausted in less than 3 years.

Initially, it is important for Mrs. Jackson to understand that the Jacksons ’ life savings will not be depleted to pay for Mr. Jackson’s care.  The Medicaid System will be able to assist Mrs. Jackson in paying for her husband’s care in a long- term care facility.  The Jacksons need to apply for Medicaid benefits.

To apply for Medicaid, the Jacksons will have to go through the Missouri Division of Family Services.  The Jacksons most likely will be told that they will have to spend $60,000 of their savings before Mr. Jackson will qualify for benefits.

With proper planning however, the results will be much more advantageous for Mr. and Mrs. Jackson. If done properly, Mrs. Jackson will be entitled to keep their entire savings, there will be no spend-down, and Medicaid will pay for Mr. Jackson’s nursing home care.

The challenge is that this cannot be accomplished when initially applying for Medicaid benefits.  It can only be done on  appeal.  But with proper assistance from an individual who is familiar with Medicaid laws and  regulations,  Mrs.  Jackson will be able to avoid spend down and keep everything she and Mr. Jackson have worked so hard for in their lifetime.

It is important that Mrs. Jackson understand that the law does not intend to impoverish one spouse because the other spouse needs care in a nursing home. Proper Medicaid planning differs according to the relevant facts and circumstances of each situation as well as the state law.  It is best to seek the advice of an Elder Law attorney when faced with this type of situation.

This is just one example of how knowledge of the Medicaid laws, rules and regulations can be used to assist families in crisis.