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Bankruptcy is generally a pathway out of debt. If you are not in deep debt now, it will not be your husband's need for Medicaid that bankrupts you.

As others have said, good time to consult an Elder Law Attorney. In my state (MN) Medicaid permits me to keep the house and one automobile as well as $135K in assets. My husband's assets are already depleted. He is not on Medicaid yet and I have about 4-6 months worth of LTC money in liquid assets to manage his placement. After that he'd need Medicaid.

Medicaid would take all of his Social Security check to put against his on-going expenses at the memory care facility. This would NOT leave me bankrupt, it would leave me in a condition where I would either need to supplement my own Social Security (get a job) or down-size my way of living (live completely below my means). Either way, I am confident I could manage.

I hope this is helpful information -- again, each state managed Medicaid a bit differently. Finding an attorney who understands YOUR state's requirements would be a good first step.
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Geaton777 Apr 24, 2025
To clarify, in MN when your SS income is combined with Medicaid to pay for the custodial portion of the care, the recipient is now allowed to keep $128 per month, every month. This is up from $90 for my MIL in MN who was in LTC on Medicaid for 7 years. The amount one is permitted to keep varies widely by state and can change every year. FYI my MIL hardly had anything to spend $128 on every month. She got 2 covid payments from the govt that she was also allowed to keep and we used that to buy a pre-paid cremation policy for her, also allowed by Medicaid.
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I would encourage you to see a certified elder law attorney and ask them what needs to be done to protect you.

If you do not handle it correctly, before placement, yes, your husband being in a facility could bankrupt you. Medicaid will require spend down of personal assets before they step in to help.

That is why having a professional help you is so vital.
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I consulted Elder Care attorneys. Medicaid interpretations of federal guidelines vary from state to state. I suggest you consider the same.
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Time to see an attorney to get questions about "division of finances" answered. Take all financial info including who is on titles of any properties.
This isn't really Do-It-Yourself any more. You need the best most solid advice you can get from an Elder Law Attorney.
Good luck.
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Not at all in my family’s experience. When my mother required Medicaid to continue payment in her NH, she remained in the same room, same everything as when she was private pay. My dad remained in their home. Mom’s small SS check went directly to the NH. Dad kept all of his SS, all of his retirement pension, all of the money in their checking and savings accounts, and a car. He was required to sell the second car. His lifestyle financially changed none. Using Medicaid does not have to mean a nightmare. The business manager at my mom’s NH walked our family through the application process in expert fashion at no cost (yes, I realize not every place has someone like this) I wish you well in finding the best place and plan for your husband
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Reply to Daughterof1930
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The short answer is NO with legal eldercare counsel. Ensure that NONE of your husband's hidden assets, gifting nor his non-exempt cash funds are kept from his care. Please also follow other readers' advice.

Thank you!
Patathome01
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Seek professional legal advice from an experienced attorney with expertise in Medicaid placement and educate yourself too, by reading everything you can from legal sources. My non-attorney answer is that yes, it will put an enormous financial strain on your savings and assets. But, at least it is a care option (for now) that takes that burden off you. The entire system is outdated and a joke. The spend down requirements for married couples are unrealistic in today’s economy where housing and food costs are soaring and transportation assistance is nonexistent or hugely expensive. There is also a shortage of available Medicaid beds in facilities and many facilities are not even taking Medicaid patients at all. The public perception of Medicaid is that it is only for the extremely poor and so many middle class people don’t think it matters to them. That is, until they live long enough to realize that at an average of $10,000/month, most people will run out of money to pay for facility care in three years or less - even if they saved and lived within their means. As I have said before, how many middle class people would go out and buy a house or rent an apartment where the monthly cost is $10,000/month - give or take a few thousand?! The present day care situation/predicament/trap is set up to quickly take people’s savings. Leaving them “bankrupt” is just collateral damage.
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No, but doing LTC Medicaid application if it’s a couple is complex.

Please realize that LTC Medicaid is both a medical and financial “at need” program. Folks get all fixated on the $ aspect, but they also have to be “at need” medically for skilled nursing care in a NH/SNF. Unless your State does LTC waiver programs to pay for AL/MC. The vast majority of entry into a NH is that they come in as a post hospitalization rehab patient and then it is determined they cannot return home so segueway from a rehab patient (paid by health insurance) to a custodial care resident (private pay, LTC insurance or LTC Medicaid). It is possible to enter a NH directly and file for LTC Medicaid on day of entry, but is not the norm.

On the financial, ONLY the spouse “at need” for a facilty has to be impoverished to meet whatever $ amount your State has for LTC Medicaid. Most States in 2025 have financial “at need” at $2901 income max and nonexempt assets max at 2K. A home and a (one) car are exempt assets. And for the NH spouse their mo income (like SSA retirement income) less a small personal needs allowance will go to the NH every mo as the required Share of Cost (SOC). The PNA varies by State…. some do a laughable $40 while others do $130.
HOWEVER
You as the still living in the home / apt are considered the “Community Spouse” and your income usually is not a factor for his eligibility but your & his assets are a factor for his eligibility. And if you realistically require some of his monthly income to keep your household afloat, you file for a CSRA waiver (Community Spouse Resource Allowance, think of it as kinda like old school alimony). CRSA varies by State.

But segregating assets and incomes of a couple are complicated and imho is never ever a DIY, it’s more CELA level of elder law attorney work. Plus y’all will need to probably do some beneficiary and will / codicil changes. It’s a lot to wade through with strict regulations, tight timeframes and terms that you are not at all familiar with. It’s atty work.

Personally I do think that for a widow or widower LTC application, who’s has a kid who is their POA can DIY the application if that kid has been rather involved on their parent’s life, are a signature on all banking and financials; & parent isn’t too crazy & controlling. And if the kid absolutely has their own $ to cover all those lil costs for their parent that arise without needing to be reimbursed. Even if the parent has a home, they can DIY it. Otherwise get an atty.

So say Don has $2800 a mo SSA and Ann has 2700 a mo SSA plus they have 162K in savings. But they have a mortgage & a car note. Don is in rehab at the NH, cannot return home as he needs 24/7 oversight. This Nh private pay monthly cost is 10K. Now their State allows the CS to retain 130K in assets. They lower their assets by each doing an allowed by their State preneed funeral of 10K. Don pays for 1 month 10K private pay. Don files for LTC Medicaid during his private pay stay at the NH as Ann now has moved 130K remaining into an in her name savings account that POD to her daughter. They leave the 2K balance in old joint but move it to his name with Ann as a signatory as 2K is the max for nonexempt assets Don can have. Assets all good!
But Ann needs his income to cover her household costs. Ann’s atty does paperwork to establish this and files for CRSA $2500 a month. CRSA gets approved. Dons State has PNA at $75 a month. So all Don has to pay the Nh as his SOC is $225 (2700 - 2500 - 75).

All these steps are pretty specific + on a narrow timeline. It’s realistically done by an attorney experienced with LTC Medicaid in your State work. If y’all have a lot of savings often even those can be dealt with a CS can maybe do a SPiA for excess $ over whatever amount her State allows CS to retain. But this is imho more high cotton type of actions that an attorney and a financial advisor together work on for you. Not a DIY.

No need to bankrupt you!
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