4 The Courier sun • health • november 6, 2014 for breaking news visit www.couriersun.com ▶health The Elder Law Minute TM Will Medicaid “Take My House?” By Ronald A. Fatoullah, Esq. and Deby Rosenfeld, Esq. During a consultation about asset protection, one of the questions most frequently asked by clients is “Will Medicaid take my house?” This query, though brief, reflects so many of the concerns and anxieties that a senior faces when potentially confronting the prospect of paying for long term care. While many people amass a great deal of wealth during their lifetimes, for the average middle class person the family residence is his/her most valuable asset, and the concern of losing this asset to pay for one’s long term care is daunting, painful and overwhelming. The answer to this frequently asked question depends on each individual’s specific situation. Firstly, in the context of Community Medicaid, which covers home care, the applicant’s home is exempt. In such instance, the applicant can receive benefits and will not lose his/her home. Nonetheless, Medicaid would have the ability to recover any expenses it laid out on behalf of the applicant from such person’s probate estate. In other words, the home is exempt but loses that status once the person dies, unless there are certain individuals, such as a surviving spouse, residing in the house after the applicant dies. Accordingly, a client should review a plan with an elder law attorney to protect the house from future Medicaid recovery from the estate of an applicant or spouse. When an individual requires nursing home care, his/her personal residence generally loses its elder law “exempt” status. There are a few exceptions to this rule. For example, if the applicant is married, the home is exempt as long as the non-applying spouse resides there. This rule is also true for a disabled or blind child or a child under the age of 21 who resides in the house. In addition, transfers of ownership of the residence to these individuals (i.e., spouse, disabled, blind or under age 21 child) are considered exempt and will not be penalized by Medicaid. For a non-married individual Medicaid nursing home applicant where none of the above-described exemptions apply, his or her personal residence is an available asset. This does not literally mean that Medicaid will take such person’s house. Rather, the applicant will not be eligible for Medicaid because he will be deemed to have assets in excess of the allowable amount. There are still some planning opportunities for a person in this predicament. If the value of the applicant’s home is no more than $814,000, the applicant can express that he/she intends to return home. If the applicant expresses this intent to return home, the house will not lose its exempt status. Nonetheless, the house will lose such status if the applicant is declared to be in permanent absent status because; it is not likely that the individual can return home. This typically occurs once the applicant has been in the nursing home for more than six months. The cost of the applicant’s nursing home care will continue to be covered by Medicaid, but Medicaid can place a lien on the house for the amount of funds it expended and can recover such funds once the applicant passes away or when the house is sold. Some of this information may be comforting to a person who had otherwise believed that he/she would most definitely lose his/her house to Medicaid in the face of long term care needs. Nonetheless, there is still a significant amount of vulnerability. In light of the fact that an applicant’s house can be protected in its entirety if advanced planning is effectuated, it behooves individuals to plan in advance and seek the counsel of an attorney who concentrates in elder law/ asset protection planning. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law firm that exclusively concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts, wills, and real estate. Debby Rosenfeld, Esq. is a senior staff attorney at the firm. The law firm can be reached at 718-261-1700, 516-466-4422, or toll free at 1-877-ELDER-LAW or 1-877-ESTATES. Mr. Fatoullah is also the cofounder of JR Wealth Advisors, LLC. The wealth management firm can be reached at 516-466-3300 or 800-353-3775. ROnald Fatoulah, ESQ, CELA* Are You A Senior With Weakness Or Difficulty Walking? Do You Have Back Pain. Joint Pain Or Poor Posture? Are Simple Everyday Tasks Getting More And More Difficult? AgeWell Can Help! PHYSICAL THERAPY AT ITS BEST YOU DESERVE THE EXPERTS! • Certifi ed Experts for Aging Adults • Highly skilled, professional staff • Positive stimulating environment • Effective, results-driven rehab of the 2014 THE QUEENS QueensCourier.com NEW Can’t get to our offi ce? AgeWell now offers EFFECTIVE THERAPY PROGRAMS IN YOUR HOME. Call now to learn how we can help you. FREE TRANSPORTATION 66-61 Grand Avenue Maspeth, NY 11378 www.agewellpt.com or call us at 516-488-8808 New location now open in Delray Beach Florida Lake Success location LOOKING FOR CARE FOR YOU OR YOUR LOVED ONE? CARING IS OUR BUSINESS Licensed by New York State Department of Health Accreditation SERVICE AREA: Brooklyn, Queens, Manhattan, Staten Island, Nassau & Suffolk counties 10% OFF with this ad Email: carelink1@hotmail.com OUR EXPERIENCED PROFESSIONALS WILL DEVELOP AN APPROPRIATE PLAN OF CARE FOR EACH CLIENT. THE PLAN WILL OUTLINE SPECIFIC TASKS TO MEET THE CLIENT’S NEEDS. WE SERVE THOSE WHO ARE: • Disabled or Elderly • In Need of Assistance with Daily Activities • Recently Discharged From the Hospital • Terminally ill • New Patients With Well Baby Care Needs • In Need of Housekeeping Services SERVICES OFFERED: • Registered Nurses • Licensed Practical Nurses • Home Health Aides • Personal Care Aides • Companions • Live In Aides • Physical Therapy (NYC-5 Boroughs) • Occupational Therapy (NYC-5 Boroughs) DUTIES INCLUDE: • Meal Preparation • Light Housekeeping & Laundry • Grocery Shopping & Errands • Escorting to Appointments • Medication Reminders • Assistance with Personal Hygiene, Dressing & Ambulation Employment Opportunities Available - Please Contact Us MAIN OFFICE: 25 South Tyson Ave, Floral Park, NY 11001 516-358-1999 Fax: 516-358-1007
SC11062014
To see the actual publication please follow the link above