Incapacity Planning - Medicaid Planning
Medicaid planning is an important part of any estate planning process. There are four basic Medicaid eligibility requirements. A person applying must satisfy all four requirements in order to achieve eligibility.
1) Categorical Requirements – To achieve Medicaid eligibility, a person must:
3) Income Eligibility – Under Medicaid rules, the applicant may not receive direct income of more than $1,911 per month (as of Jan. 1, 2008). If the applicant's monthly income exceeds the cap amount, then a Miller trust can usually solve the problem. Income eligibility is often a major stumbling block for Medicaid applicants.
4) Asset Eligibility – If one spouse is entering a nursing home, the asset cap for the institutionalized spouse is $2,000. If both spouses are entering a nursing home, the asset cap is $3,000. These asset caps are subject to many exceptions. Generally, a home valued at up to $500,000 does not count as an asset for an individual, nor does the spouses' home at any value if one spouse continues to live in the home.