6 Common Misunderstandings About Nursing Home Costs

06 October 2010 / General / 1 Comment

Many think that qualifying for Medicaid to assist with long term care costs means giving up comptets control of their assets. However, this is a myth. You can control your assets and be on Medicaid at the same time.

You may be wary of Medicaid. fearing that the State will take your home. The truth is that if your spouse lives in the home or if your child has provided care for two years of more that has kept you out of a nursing home, the State will not take your home. Even if you lived alone and are now in a nursing home, you may be able to keep your home during your lifetime.

You may have considered giving your home to your children with a quit claim deed. This is very dangerous. You could incur capital gains taxes and be penalized for a significant gift when II comes time to apply for Medicaid. You may be generous with small gifts for special occasions to your loved ones. You may donate a few dollars here and there to charitable or political causes. Beware. Medicaid will add up an of these items and penalize you for gifting. The cumulative effect of these gifts over five years can be astounding. With a generosity check-up, you can maximize both your gifts and your eligibility for

Medicaid.

You may have placed your children in joint tenancy on your accounts so they can help you manage your affairs. The ownership you have given them can cause gifting penalties and may create squabbles among your children that have been left out.

You may feel tempted to give your assets away to avoid probate. This is risky. You could be left with nothing when you need long term care. There are ways to preserve your assets for your own care and your children.