What Happens to Your Assets if Your Spouse Needs Long-Term Care?

Do you know what could happen to your assets if your spouse ever needs to go into a long-term care facility? There are a lot of misconceptions out there about Medicaid asset and income requirements, which is dangerous because getting any one of those requirements wrong can result in a significant loss in assets and lead, inevitably, to a denial of Medicaid benefits. One of the more common misconceptions I see as an Asset Protection Attorney is about spousal income limits when a spouse enters a nursing home for long-term care. Medicaid eligibility rules differ for the admitted spouse and the community spouse, which complicates the issue further, but does provide some good news; the community spouse does not have to give up all of their property, income, or assets if their spouse is admitted to a nursing home for long term care. 

That last part bears repeating:  a community spouse is not required to give up any of their income for Medicaid eligibility, and, in fact, may be entitled to a portion of their spouse’s income if they can present a need for the additional financial support. 

This extra income is determined by the Minimum Monthly Maintenance Needs Allowance (MMMNA), which is determined by the annual inflation rate.  The Oklahoma MMMNA amount is $3,260.00 and in Arkansas the MMMNA amount is $3,259.50.  You should speak with an Asset Protection Attorney who is experienced in Medicaid planning to determine whether you may be entitled to a portion of the admitted spouse’s income if you qualify for the MMMNA. 

Community spouses may also keep a certain amount of their jointly held assets, which in 2021 will be one-half of the joint assets up to $130,380. This amount, called the Community Spouse Resource Allowance (CSRA), and is determined annually by the State Medicaid Agency according to the rate of inflation.  The healthy spouse may also keep their own vehicle, and either keep or buy a second vehicle to transport the spouse receiving Medicaid benefits, if applicable.

One of the biggest exemptions available to the spouse of a Medicaid recipient is the home. The home is not considered a countable asset by Medicaid as long as one spouse continues to live in the home while the other is receiving long-term care covered by Medicaid. However, there are certain exceptions to this rule, which is why it’s important to speak with an experienced asset protection attorney if you believe you may benefit from this circumstance. 

For more information about Medicaid planning when your spouse is entering a nursing home, or if you or your spouse are considering applying for Medicaid coverage for long-term care issues, please give me a call at either (918) 336-1722 or (501) 629-9144 to schedule a consultation.