Hi All, I feel panicked and need to know somethings I should look out for. I got on MAGI Medicaid at about age 55. FF I learned my estate must pay back the monthly costs and for services upon death or upon applying for long-term care I'd need to give up possessions but the crux of the part eating away at me is the look back and this is what I ask and am facing as follows:
Since I got on Medicaid at 55-56 ish I am seriously considering quitting Medicaid altogether because it sickens me that my estate will be in jeopardy and my heirs will suffer and not receive any money so I want to quit Medicaid and limit the damages to 3 years of estate recovery payback. Please follow along I know it's boring!
I heard when I die the lookback of 5 years will definitely be applied to my estate. Now for the big problem. I heard that the look back will apply to the FIRST time I got on Medicaid which was as said around 56.
If I get off Medicaid at 62 and live a normal life say until 85, When will the look back start from, from age 62 and 5 years back or 85 and 5 years back?
Can I sign over my home to my children at age 62 without legality issues and this is assuming maybe there would be a 10-20 year spread so No fraud issue? I want to give everything I got to my kids and I will live an impoverished life fine with me to avoid the state getting it and am I committing fraud? If I give everything at 62 and die at 85 is that a problem?
Please give me something to be positive about. Don't scare me anymore than I already am if possible. This is extremely stressful and I can't bear much more legal scariness. There's a lot more I can reference here but for this time I'll end it here.
Protips are welcome.
Am I wrong for protecting my assets or trying to? I mean I'm not going to have coverage because I feel like I need to protect my assets. This is scary stuff being older and no healthcare coming down on me at least until Medicare.
Thank you
Its pretty cut and dry when you are using Medicaid for care in a Nursing home. You have to spend down assets before you qualify. If you have a home and it doesn't sell before your passing, yes Medicaid will put a lean on it which will need to be satisfied at the time the home sells. And this is where the 5 year look back comes in. You cannot transfer any assets or home within those 5 years before you need Medicaid to pay towards you care in a NH.
But you are on Health insurance, correct? Here is an article because when u started receiving medicaid help is a factor.
https://www.verywellhealth.com/how-the-medicaid-estate-recovery-program-works-1738836
The healthcare criteria is so different. You really can't have too many assets. My nephew is limited to what he can earn and limited to what he can have in savings, etc. And this is reported yearly. So you should have limits too.
Again, you really need a lawyer well versed in Medicaid to run this by. My Aunt received Medicaid for health. Her son lived with her and continues to live in her house because he is disabled. If he sells it though, he owes Medicaid 23k.
I can see where ur coming from to a point. The only reason I would want to protect my house is because of what I went thru with my Moms house with Medicaid. I don't want my daughters to deal with that. You should not do without so your kids inherit.
Is there a reason you're putting your heirs before your own health? I think this is the first issue to seriously address. How much are your heirs helping you out now?
" I want to give everything I got to my kids and I will live an impoverished life fine with me to avoid the state getting it "
Same comment as above, adding that it appears you're willing to accept assistance from the state, but don't seem to have a positive feeling about its involvement.
I think it would really help to re-evaluate your priorities, especially if your heirs aren't involved in helping you now. Is it then appropriate for the state to do so?
I'm not deliberately trying to upset you, as you seem to be quite worried over this, but I do think that a realistic assessment needs to be made. Medicaid should be for those who REALLY need assistance, and don't have assets to sell (which is perhaps something you could do to avoid getting Medicaid).
I'm this protective of what I own because of my awareness that just occurred months ago and I learned! My father didn't plan correctly and to make a long story short, his desire to leave his children his homestead and proceeds was swooped up by the state when he suddenly required long term care.
Others have criticized me for trying to think of my heirs and ensuring they aren't homeless and not particularly partitioning funds to pay the state back. I mean there's estate lawyers that people pay for the sole purpose of protecting their assets from takeover where possible and people get mad at me for asking outright how to do it.As if I'm so different from the people who don't publicly ask within the community here or elsewhere.
My whole purpose of my question was to learn about the 5 year lookback and I know somewhat more now. I'm not obligated to make sure I leave enough money for the state to claim back but I understand when there IS enough to claim they can take it. But if my estate has no value left because I intentionally used it to support my family and I'm basically penniless say ten or 12 years prior to my death then the state can't take. If it isn't there there's nothing to claim. This is what others have told me. What pray tell am I so wrong about? There's a story in here about the unawareness of estate recovery and it was too late by then. State got their paws on what could have been theirs had they known and planned. Make me feel good about something here not like a bad person. I'm sorry about if I seem intentionally rude to you. I promise you that's not the case. Just talking.
Lastly the importance of protecting what's left is because the one's I'm looking out for are not able enough to do for themselves as adults. They desperately needy help. I need to come through now and beyond. I care.