7 Medicaid Myths

Learn Proven Strategies To Save Your Home and Protect Your Life Savings From Devastating Nursing Home Costs
    
Myth 1:  I Have To Give Away Everything I Own In Order To Get Medicaid
False:  You’re allowed to own some property in some forms and still be eligible, but you need a detailed knowledge of the Medicaid Rules, plus skill, plus ingenuity to figure out which property in which forms are allowed and which aren’t.

Myth 2:  I Can’t Give Away Anything and Still Get Medicaid
False:  The Medicaid rules state that you can disqualified for benefits if you give away your assets in some cases. In other cases you can give away tons of money and get Medicaid. It all depends on what is given away, how much it’s worth, when it is given away, to whom it is given to, and the exact sequence of events of how it was given.

Myth 3:  I Have To Wait For 5 Years After Gifting In Order To Get Medicaid
False:  There is a 5 year look-back period after you apply for benefits and during that period Medicaid has the right to examine all gifts, but that does not mean gifts are not allowed. In fact, certain types of gifts never cause disqualification and sometimes disqualification may only be for a month or two.

Myth 4:  If During The 5 Year Look-Back Period I Give Away My Money To My kids, They Will Have To Give It Back In Order For Me To Get Medicaid
False:  In some cases the kids may voluntarily give back some or all of the money in order to get full Medicaid benefits, but it is not true in all cases that the kids must give back money to the parent in order to get Medicaid.

Myth 5:  I Can Get Medicaid Immediately If I Give All Of My Assets To My Spouse
False:  This is a huge myth and mistake because Medicaid counts assets in the name of the sick spouse, and everything in the name of the well souse as well as everything in the name of both spouses jointly.

Myth 6:  I Can Give Away My Money and Still Get Medicaid, But The Most I can Give Away Is $14,000 Per Year
False:  Medicaid and the IRS are two separate entities. You can give away $1 million and have no tax consequences, but if you give away as little as $14,000 you will face a period of ineligibility for Medicaid. 


Myth 7:  The Healthy Spouse Gets To Keep Half Of The Assets
False:  That could be true, but may not be true. As of the day the sick spouse enters the nursing home, the well spouse is allowed to keep ½ of the total assets, but no more than $117,240.