Protecting Assets From Medicaid Spend Down: Gifting, Medicaid Asset Protection Trusts, Life Estates, Annuities

Description

The spend down of assets for Medicaid qualification causes much confusion. Practitioners advising the senior population must understand medical criteria, qualification standards for Medicaid, how assets are classified, differences between individuals and married couples, and the appeal process. Furthermore, certain circumstances may make spend down unattractive for those who have accumulated wealth that they want to protect from Medicaid spend down.

The spend down or disposal of assets to qualify for Medicaid is the preferred method for most clients requiring assistance with long-term care. However, for those who are over the income limits, other options must be implemented since income cannot be spent down. The same consideration must be given for those who have accumulated a certain level of wealth or assets that they would not want to be subject to a spend down or disposal.

Asset protection strategy implementation requires a working knowledge of how to determine the spend down and under what circumstances other options would better serve a client. Rules for married couples are particularly complex. Some spend down strategies that work well for a married couple may not work for a single person, and vice versa. Counsel with elderly clients must thoroughly understand how funds can be spent to avoid Medicaid disqualification and also consider other options such as gifting for Medicaid purposes, utilizing MAPTs, life estates, annuities, and other methods.

Listen as Kyla G. Kelim, Attorney at Aging in Alabama, discusses strategies for spend down, gifting for Medicaid purposes, shielding assets from Medicaid calculations, and mechanisms to maintain Medicaid eligibility and protect assets.