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Medicaid eligibility and asset transfers
- 1. Medicaid Eligibility and Asset Transfers As long as assets are available under state law, they can count for purposes of Medicaid eligibility, no matter how long ago the assets were transferred to another. Place logo or logotype here, otherwise delete this. VIDEO LAW OFFICE OF DAVID PARKER BLOG PLLC
- 2. The federal government, perhaps understandably, takes a dim view of trying to game the system when it comes to eligibility for Medicaid. A recent court case highlights this fact, which can be important for decisions regarding elder care and New York asset protection. The case arose in Wisconsin, where an applicant had transferred funds to her children 17 years before applying for Medicaid. Place logo or logotype here, otherwise delete this. VIDEO LAW OFFICE OF DAVID PARKER BLOG PLLC www.parkertrustlaw.com
- 3. The case in question is Hedlund v. Wisconsin Dept. of Health Services (Wis. Ct. App., No. 2010AP3070, Oct. 13, 2011). Lucille Hedlund transferred all of her assets except for her checking account to her children in 1991. The same day that she transferred the funds, her children put it all into an irrevocable trust with their mother as the beneficiary. Place logo or logotype here, otherwise delete this. VIDEO LAW OFFICE OF DAVID PARKER BLOG PLLC www.parkertrustlaw.com
- 4. Medicaid ruled that there was reason to infer that Mrs. Hedlund had directed her children to do this, and that the funds were available to her under state law. On that basis, she was denied coverage under the Medicaid program 17 years after the trust was created, as she entered a nursing home in 2008, and the court upheld the denial. Medicare provides limited coverage (or none) for long term care, and so Mrs. Hedlund was stuck with the necessity of using up her carefully-protected assets before federal aid would cover her. Place logo or logotype here, otherwise delete this. VIDEO LAW OFFICE OF DAVID PARKER BLOG PLLC www.parkertrustlaw.com
- 5. The cost of medical care and of long-term care in elderhood are important considerations for NY estate planning, and as this example shows, the rules underlying federal programs can be tricky. Before you or a loved one attempt something that you think may work for purposes of qualifying for federal medical assistance and avoiding asset depletion, it’s wise to seek competent legal advice. Place logo or logotype here, otherwise delete this. VIDEO LAW OFFICE OF DAVID PARKER BLOG PLLC www.parkertrustlaw.com
- 6. Law Office of David Parker Estate Planning and Elder Law www.parkertrustlaw.com