No, You don’t necessarily have to cash out life insurance when applying for Medicaid
How often have I heard clients tell me they were told to cash out a life insurance policy as part of a “Medicaid spend-down,” because it was “an asset.” The fact is, whether a given policy needs to be liquidated depends on who owns the policy, what its cash surrender value is, and who is applying for Medicaid benefits. There’s no “one rule for all...
Medicaid annuity planning is alive and well in NJ
When a person applies for Medicaid under the NJ MLTSS program after having made gift transfers during the most recent 5 years, there will likely be a penalty period in which Medicaid will not pay for the care that this person needs (unless the transfers were exempt, such as transfers to a spouse or disabled child). This transfer penalty is mandated by federal law, and the greater the amount...
Some trust assets may disqualify a Medicaid applicant
One friend tells another, “Put your assets in a trust so the nursing home won’t take them.” But this technique isn’t necessarily the “magic bullet.” The concept of countable assets and resources is broader under Medicaid law than it is under some other bodies of law. Placing your assets into a trust structure might avoid some problems — like probate...