IRA is a resource. But imho you need to look at the bigger picture... Realize that dealing with Medicaid for couples is going to be way WAY more complex than for an individual widow or widower. You as a CS “community spouse” should not ever make yourself impoverished for her to go onto & be eligible for LTC NH Medicaid, which is I’m assuming the goal to get her qualified for. But how to do that to best advantage imo needs to be discussed with elder law atty experienced with CS / NH spouse situation. Not diy. Why......
Well Hopefully you have NOT yet applied for Medicaid for her. Reason being is Medicaid for couples does a “snapshot” day to which all assets (your, hers, combo) are affixed to. So should you need to move $, it needs to get done before snapshot day. Snap is usually fixed to date the application is signed.
What I mean by move $ is $ go to the legit items allowed...... pay off / down on mortgage; turn in your 2 cars to get 1 newer more dependable one (Medicaid only allows for 1, yes Tasha one vehicle, most couples have 2); pay forward as many items now for this year....like insurances, utilities, service providers (AC guy that comes twice a yr or yard guy who comes every 3 weeks); update legal; do a preneed funeral & burial for you both within Medicaid limits (FH usually know what this amt is, likely has a max of 8k or so each). If you all need dental, get it done & paid for now. This is all about lowering the asset base. Why.......
For CS (that’s you - the living in the home “community” spouse), Medicaid allows you to retain assets. $ Amount varies by state as Medicaid is uniquely administered by each state under overall federal guidelines. By & large $122k in nonexempt assets plus exempt assets of a homestead (usually 550k max value for most states) and one car. So if combined assets go over $122k, you will have to spend down to the magical 122k. (This is unlike individuals LTC NH Medicaid which for most states have a max of 2k in nonexempt assets.) You have to know exactly what CS rules are for your state, which is best done by atty as your likely overwhelmed in day to day caregiving & rightly so. Btw I’m not an atty.
But CS situations also different in 2 other mucho importante ways: - your income is not a factor for her LTC Medicaid eligibility. Only her monthly income (like her SS or pension) counts towards her required co pay or SOC share of cost required to be paid by her to NH ea month. If you find that even after paying off stuff, your still like 100/200k over the magical 122 large, you might perhaps be able to shift excess assets into a SPIA for you, as the $ paid by the SPIA would be income to you solo. SPIA for a CS when medicaid involved is not a DIY as it must be Medicaid COMPLIANT (not just Medicaid eligible or allowed) and that is speciality underwriting. It is not, NOT, at all your typical annuity that anyone with an insurance license can tout to sell. Personally I do not like annuities as they tend to be sold to to gullible elders with fear factor (“gov mint gonna take yur $” or “avoid probate” yell) with huge commission structure and settlement fees. But a CS SPIA is a special creature that might work if your $$ & actuarial can get it to be medicaid compliant. - if your situation is the opposite, you have no extra $ & need her income to live. Then you can file for CSRA or MMNA. Resource or Needs Allowance.Basically her SS is waived to you instead of getting paid as her SOC. Atty should know how to maximize CSRA request. Think of it as kinda like old school alimony to you.
Plus likely life insurance beneficiary changes needed for both of you. Really CS / NH spouse stuff not a DIY, get financials together and find a NAELA or CELA level of atty to discuss what’s what. Good luck Tasha
You really need to talk to your State's Medicaid eligibility office. Every state is different. There are usually spousal provisions but if the IRA is in her name it could be considered a resource.
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Realize that dealing with Medicaid for couples is going to be way WAY more complex than for an individual widow or widower. You as a CS “community spouse” should not ever make yourself impoverished for her to go onto & be eligible for LTC NH Medicaid, which is I’m assuming the goal to get her qualified for. But how to do that to best advantage imo needs to be discussed with elder law atty experienced with CS / NH spouse situation. Not diy. Why......
Well Hopefully you have NOT yet applied for Medicaid for her. Reason being is Medicaid for couples does a “snapshot” day to which all assets (your, hers, combo) are affixed to. So should you need to move $, it needs to get done before snapshot day. Snap is usually fixed to date the application is signed.
What I mean by move $ is $ go to the legit items allowed...... pay off / down on mortgage; turn in your 2 cars to get 1 newer more dependable one (Medicaid only allows for 1, yes Tasha one vehicle, most couples have 2); pay forward as many items now for this year....like insurances, utilities, service providers (AC guy that comes twice a yr or yard guy who comes every 3 weeks); update legal; do a preneed funeral & burial for you both within Medicaid limits (FH usually know what this amt is, likely has a max of 8k or so each). If you all need dental, get it done & paid for now. This is all about lowering the asset base. Why.......
For CS (that’s you - the living in the home “community” spouse), Medicaid allows you to retain assets. $ Amount varies by state as Medicaid is uniquely administered by each state under overall federal guidelines. By & large $122k in nonexempt assets plus exempt assets of a homestead (usually 550k max value for most states) and one car. So if combined assets go over $122k, you will have to spend down to the magical 122k. (This is unlike individuals LTC NH Medicaid which for most states have a max of 2k in nonexempt assets.) You have to know exactly what CS rules are for your state, which is best done by atty as your likely overwhelmed in day to day caregiving & rightly so. Btw I’m not an atty.
But CS situations also different in 2 other mucho importante ways:
- your income is not a factor for her LTC Medicaid eligibility. Only her monthly income (like her SS or pension) counts towards her required co pay or SOC share of cost required to be paid by her to NH ea month.
If you find that even after paying off stuff, your still like 100/200k over the magical 122 large, you might perhaps be able to shift excess assets into a SPIA for you, as the $ paid by the SPIA would be income to you solo. SPIA for a CS when medicaid involved is not a DIY as it must be Medicaid COMPLIANT (not just Medicaid eligible or allowed) and that is speciality underwriting. It is not, NOT, at all your typical annuity that anyone with an insurance license can tout to sell. Personally I do not like annuities as they tend to be sold to to gullible elders with fear factor (“gov mint gonna take yur $” or “avoid probate” yell) with huge commission structure and settlement fees. But a CS SPIA is a special creature that might work if your $$ & actuarial can get it to be medicaid compliant.
- if your situation is the opposite, you have no extra $ & need her income to live. Then you can file for CSRA or MMNA. Resource or Needs Allowance.Basically her SS is waived to you instead of getting paid as her SOC. Atty should know how to maximize CSRA request. Think of it as kinda like old school alimony to you.
Plus likely life insurance beneficiary changes needed for both of you.
Really CS / NH spouse stuff not a DIY, get financials together and find a NAELA or CELA level of atty to discuss what’s what. Good luck Tasha
Whether Medicaid allows it to be deducted or what should be asked of them.