Legal Question in Elder Law in Alabama

Re: medicade , nursing homes, and spousal gifts

I am assuming that Medicaid application is being considered for nursing home care. While there is not enough room to give you a complete answer, I will touch on as much as possible. First, Medicaid considers all assets of both spouses regardless of the information you gave me. Medicaid does not honor a prenuptial agreement. The applicant must meet the medical, income and asset tests. Medicaid pays for nursing home care only, no assisted living. The nursing home (NH) spouse has an income limit in Alabama of $1,737 per month and cannot have more than $2,000 in assets. Excluded assets are a life estate, a car worth no more than $4,500 or unlimited if required for medical visits. Burial insurance or life ins for burial is excluded up to $5,000 (does not include vault, casket). Also excluded is up to $6000 in real property that generates income. The stay at home/ community spouse (CS) gets to keep the home as long as they reside in it during the NH spouse stay in a Nsg Home. For 2005 the CS can keep a minimum of $25,000 of the joint assets or 1/2 of all assets up to $95,100. The CS can also receive some of the NH income if it is below the minimum monthly needs allowance (there is a maximum cap).Gifts from the NH spouse incurs a 36 month look back period or 60 months for a trust.Otherwise gifting is reviewed by a period of ineligibility.This touches on alot, considering your question, Medicaid would consider all assets and if the couple got a "Medicaid divorce" where the NH spouse did not get a fair amount of the marital property, Medicaid will even come back and contest it. Hope this gives you a start. Your best resource will be an Elder Law Attorney.Any error in the application can incur a penalty period and can be devestating towards application when the resources for long term care are limited. Good luck!