Estate recovery is a state program created to recoup the costs of providing care to Medicaid long-term care recipients. Once a Medicaid recipient passes away, the state uses a variety of legal processes to take the remaining assets of that Medicaid recipient to the extent of Medicaid benefits provided. The state’s ability to take assets is not unlimited and may be subject to a variety of allowances provided in other parts of the state law. For most people, the biggest worry regarding estate recovery is that the state will take the family home.
Archive for the 'Estate Recovery' Category
FAQ: What is estate recovery?
Posted by Jerrold Bartholomew on September 1, 2008
Posted in Detroit Elder Law, Estate Recovery, FAQ, Flint Elder Law, Medicaid Qualification, Roscommon Elder Law, Saginaw Elder Law, Technical, Your Home | Tagged: Estate Planning, Nursing Home, Estate Recovery, Michigan Estate Recovery, Financing A Nursing Home Stay, FAQ: Medicaid Qualification, FAQ: Elder Law, Exempt assets | No Comments »
FAQ: Do I have to sell my home?
Posted by Jerrold Bartholomew on July 30, 2008
QUESTION: I am concerned about my parents. My dad just entered the nursing home. His care costs more $6,000.00 per month and my mother is almost out of savings. Does she have to sell the house (which is worth about $250,000.00) to pay for my dad’s care? And what about estate recovery? What is that?
ANSWER: Your mother does not have to sell the house and for now, it is safe as long as you follow the proper procedures to qualify for Medicaid. But there are still several concerns here.
First, most people needing nursing home care will end up receiving Medicaid assistance at some point. Many people make the mistake of thinking that they should just pay the nursing home each month without realizing that there are often estate planning options that can prevent the need for a full spend down. Seeing an elder law attorney during a nursing home spend down is a lot like seeing an accountant at tax time: there are a lot of deductions and exclusions that you would not otherwise know about that can cut your tax bill. An elder law attorney can help you minimize your nursing home bill in the same way. Read the rest of this entry »
Posted in Ann Arbor Elder Law, Detroit Elder Law, Estate Planning, Estate Recovery, FAQ, Flint Elder Law, Gladwin Elder Law, Medicaid, Michigan Elder Law, Nursing Home Crisis Planning, Roscommon Elder Law, Saginaw Elder Law, Your Home | Tagged: Detroit Elder Law, Estate Recovery, FAQ, FAQ: Medicaid Qualification, homestead exemption, houghton lake, Lapeer Elder Law, Macomb Elder Law, Medicaid, Medicaid Long Term Care, Michigan Elder Law, Nursing Home, Oakland Elder Law, Roscommon Michigan, transition to nursing home, Wayne County Elder Law | No Comments »
Increasing the Community Spouse Resource Allowance
Posted by Jerrold Bartholomew on May 3, 2008
When one spouse requires long-term care in Michigan, the Department of Human Services will do an assessment of the couple’s total resources. Without any planning or asset positioning, the spouse at home will be permitted to keep 1/2 of the couple’s assets as of the date the spouse needing long-term care entered either the hospital or long-term care, with a maximum of $104,400.00 and a minimum of $20,880.00 (in 2008). For example, a marital estate valued at $100,000.00 in non-exempt assets will be limited to $50,000.00 that the at-home spouse can keep. The remainder will have to spent on long-term care or converted to exempt assets before Medicaid will provide assistance with the cost of long-term care.
Read the rest of this entry »
Posted in Asset Protection, Estate Planning, Estate Recovery, Medicaid, Medicaid Qualification, Pre-Planning for Long Term Care, Your Home | Tagged: Asset Protection, community spouse resource allowance, Estate Planning, Medicaid Qualification, michigan medicaid qualification, Pre-Planning for Long Term Care, Pre-Planning for Medicaid Qualification, revocable living trusts, transition to nursing home | No Comments »
Estate Recovery
Posted by Jerrold Bartholomew on March 10, 2008
You have perhaps heard that Michigan passed a form of estate recovery in September of 2007, becoming the last state in the union to do so. Estate recovery is a program through which states attempt to recoup the costs of Medicaid long-term care benefits paid out from the estate of the Medicaid recipient. Although Michigan has passed the necessary legislation to begin estate recovery, it will not be until the program is reviewed and approved by CMS that estate recovery against real property is officially implemented.
Posted in Annuities, Estate Recovery | Tagged: annuities, Deficit Reduction Act, Elder Law, Estate Planning, Estate Recovery, law, legal, Medicaid Qualification, Michigan, Michigan Estate Recovery, Pre-Planning for Medicaid Qualification, probate | No Comments »
