| It isn't just the US Government waiting out there to | | | | household furnishings and personal effects. In some |
| grab a chunk of your hard earned estate when you | | | | states, the remaining spouse's IRAs are exempted, as |
| become incapacitated or die. Strangely enough, state | | | | well. The non-ailing spouse is then entitled to half of |
| coffers are frequently enlarged through the | | | | any remaining assets, subject to minimum and |
| mechanism of Medicaid. When someone requires | | | | maximum limits, while the other half must be spent on |
| long-term care in a nursing home, unless he or she has | | | | the nursing home care. |
| a private long-term care insurance policy, their whole | | | | In addition, income like Social Security, some pensions, |
| estate may belong to the state when they pass on. | | | | and some interest dividends are subject to |
| Nursing home care is not free, even in county or state | | | | "maintenance allowance," rules designed to allow the |
| operated facilities. Someone, somewhere, has to foot | | | | healthy spouse enough money to live on. If, for |
| the bill. If you, or your family, does not have resources | | | | example, the Social Security Income or other pension |
| to pay for the care, Medicaid steps in. While Medicaid | | | | income is in the remaining spouse's name, he or she is |
| is a federal program, funds are allocated to the states | | | | entitled to keep it for living expenses. In some cases, |
| for administrative purposes and are subject to state | | | | the spouse at home can receive more than half of the |
| rules and regulations. | | | | marital assets, particularly if his/her income falls below |
| People who apply for Medicare aren't always aware | | | | minimum levels. |
| of exactly how the program works, but even more | | | | If there is no spouse, in many states the individual |
| sadly, most people who are forced to apply for | | | | requiring nursing home care is required to sign over his |
| Medicare really have no other choice, so it doesn't | | | | or her home to the state to reimburse Medicare. When |
| matter how it works. By the same token, Medicaid | | | | the nursing home stay is not permanent, the Medicaid |
| rules have been revised so that if one half of a | | | | recipient is allowed to live in the house until death, but |
| married couple requires nursing home care, the other | | | | cannot pass it on to children or other heirs, because it |
| spouse doesn't have to sell the house and live on the | | | | actually belongs to the state, not to the individual. |
| street. | | | | Estate planning, particularly if it involves some sort of |
| Under the most recent Medicaid rulings, when one | | | | long-term care insurance, can alleviate or eliminate |
| spouse has to be in a nursing home for 30 days or | | | | some of the worries associated with the potential for |
| more, the couple's assets are assessed and some | | | | requiring nursing home care. Talk to your attorney or |
| assets are excluded by virtue of "spousal | | | | other estate planner about what can be done to |
| impoverishment" rules. The couple's residence is | | | | protect your remaining assets if you have to go to a |
| excluded from the asset evaluation, along with | | | | nursing home. |