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How To Care For The Nursing Home Spouse And Still Pass On An Inheritance To The Children

Carol and Mike Jones have been residents of Greenville for nearly 30 years. Several years ago Mrs. Jones began to develop memory problems and in a few years she was diagnosed with Alzheimer’s.

Mike loved Carol very much and cared for her, at home, for as long as he could. When he could care for her no longer, he placed her in a nursing home and then went to an elder law attorney for advice. Mike was paying for Carol’s nursing home room at a rate of $3500 per month. Mike and Carol had approximately $300,000 in assets, and with planning, Mike was able to convert some of his assets to income and at the same time, get Carol qualified for Medicaid. All of this was accomplished in less than 90 days, and Mike was able to protect most of the family’s assets.

As long as Mike was alive, he knew he could provide the extra things which Carol would need and that Medicaid might not cover. He was concerned, however, as to what would happen in the event of his death. He wanted to provide for Carol and still leave something for the kids, Greg, Marsha, and Jan.

As part of the planning, he set up a will with a testamentary trust. His attorney explained to him that the laws passed several years ago, (OBRA-93) allow an individual to create a Supplemental Needs Trust for his surviving spouse, to provide the extras that Medicaid will not cover, without the funds in the trust being counted for Medicaid purposes.

The law is very specific and states that only a special needs trust, created through a will that has gone through probate, will qualify for these special protections. In addition, it’s believed that the assets in the testamentary special needs trust will also be free from estate recovery.
The bottom line is that Mike Jones will be able to provide any extras that Carol might need without disqualifying her from Medicaid while at the same time preserving the bulk of those assets for the children.

Needless to say, Mike is quite happy that he was able to find a way to protect the assets while they are alive and when both he and Carol are gone.

What did Mike Jones do right? He consulted with an experienced and qualified elder law attorney who was able to give Mike guidance and recommend a plan for him to implement and get Carol qualified for Medicaid while at the same time preserving most of the family’s assets. Families should not wait to consult a qualified and experienced elder law attorney because often it may be too late for the attorney to help as waiting too long may reduce the legal options the attorney is able to recommend to the family.

Elder Law Today is written by Jackson E. Fields, Jr., Attorney at Law. This newsletter is published as a service of the Fields Law Firm, P.A. This information is for general informational purposes only and does not constitute legal advice. For specific questions, you should consult a qualified elder law attorney. © www.thefieldslawfirm.com

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The information contained herein is for educational purposes only and does not constitute investment, financial, tax or legal advice. Further, this information is general in nature and is not intended to be reflective of any specific plan. Please contact your personal investment, financial, tax or legal advisor regarding your specific needs and situation.