Legal Question in Elder Law in Michigan

Medicaid and savings bonds

My mother and I are joint owners ( her name is stated first and then it says ''or'' with my name) of series HH/H bonds. In in effort to protect her assets and spend down within the legal limits would it be wise for me to cash the bonds prior to applying for medicaid? I am afraid if I hold them the gov will consider them part of HER assets or at least half. I have read that either party can cash in without the others permission so I am assuming the only impact will be my responsibilty for the interest earned at tax time.


Asked on 2/25/07, 7:13 pm

1 Answer from Attorneys
Don Rosenberg Barron, Rosenberg, Mayoras & Mayoras, P. C.

Re: Medicaid and savings bonds

This is what I specialize in. I have been practicing Elder Law before it was Elder Law. For my credential go to our website www.tcfel.com and click on attorneys.

Now for your question. If you cash out the bonds they will be considered a divestment and your mom will be disqualified for 1 month for as many months that she could pay the for the average cost of care. Roughly $5,900 a month. Further, you are WRONG in your assumption that only half of the dollars are attributable to your mother.

You need the counsel of an elder law attorney to help wade thru the Medicaid laws. I can say I have never been denied a Medicaid application in all the years I have been doing this.

There is a way you can gift the bonds and in most likelihood protect them. How much are the bonds.

Please feel free to contact me by email or phone. By the way you are in Birmingham and we are in Troy.

Don Rosenberg

www.tcfel.com

[email protected]

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Answered on 2/26/07, 12:42 am


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