• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Our Promise to You During COVID-19/Coronavirus
    • Home
    • Our Firm
      • About Our Firm
      • Attorney and Staff Profiles
      • Speaker Connection
    • Services
      • Asset Protection & Business Planning
      • Elder Law & Medicaid Services
      • Estate Planning Services
      • Financial Planning Assistance
      • Incapacity Planning
      • IRA & Retirement Planning
      • Legacy Planning
      • LGBTQ Estate Planning
      • Probate
      • SECURE Act
      • Special Needs Planning
      • Wills & Trusts
    • Elder Law
      • Coping with Alzheimer’s
      • Guardianship and Conservatorship
      • Medicaid Crisis Planning
      • Medicaid Planning
    • Seminars
    • Webinars
    • Resources
      • Elder Law Resources
        • Elder Law & Medicaid Definitions
        • Elder Law Reports
      • Estate Planning Resources
        • Estate and Gift Tax Figures
        • Estate Planning Articles
        • Estate Planning Definitions
        • Estate Planning Reports
          • Advanced Estate Planning
          • Basic Estate Planning
          • Estate Planning for Niches
          • Trust Administration
        • Estate Planning Worksheet
        • Is Your Estate Plan Outdated?
      • Free Consultation
      • Free Estate Planning Seminars
      • Frequently Asked Questions
        • Estate Planning FAQs
        • Trust Administration & Probate FAQs
      • Newsletters
      • Our Client Care Program
      • Pre Consultation Form
      • Professional Resources
        • Educational Alerts
    • Reviews
      • Our Reviews
      • Review Us
    • Contact Us
    • Blog

    McGee Law Firm

    Your Resource for Estate Planning, Elder Law and Medicaid / VA Planning

    Call Us Today 817-899-3286
    • Facebook
    • Instagram
    • LinkedIn
    • YouTube
    Attend a Free Seminar
    Attend a Free Webinar
    Estate Planning Webinar
    Nursing Home Webinar
    Home / Resources / Elder Law Resources / Elder Law & Medicaid Definitions

    Elder Law & Medicaid Definitions

    Community Spouse:

    The spouse who does not need long-term or nursing home care. This spouse continues to live in the community.

    Countable Assets:

    Assets that are not exempt are countable. This includes, but is not limited to, checking and savings accounts, CDs, money markets, stocks, mutual funds, and second cars.

    Deficit Reduction Act of 2005:

    A federal law passed by Congress in 2006 makes pre-planning for Medicaid eligibility more important than it was previously. This is because the penalties for transfers will not begin until a person enters the nursing home and is otherwise eligible for Medicaid coverage. Use of an Irrevocable Living Trust as a part of this pre-planning is becoming more popular.

    Division of Assets:

    This is the name commonly used for the Spousal Impoverishment provisions of the Medicare Catastrophic Act of 1988. It applies only to couples. Their countable assets are divided in two, with the community spouse allowed to keep one-half of the total, up to a certain amount. The other half of the assets must be spent down.

    Estate Recovery:

    When the Medicaid recipient dies, the state may (and often does) seize remaining assets to reimburse the state for the Medicaid benefits paid during their lifetime. In many cases, this includes the recipient’s primary residence if they don’t have a surviving spouse. This provides a cost effective way to offset state and Federal costs. You should consult with a qualified professional to analyze your particular situation and protect your home.

    Exempt Assets:

    Exempt assets are assets which do not count against your monthly resource limit. The list of “exempt assets” may differ slightly from state to state.

    Look-Back Period:

    If you transfer assets to another individual (spouses excluded) within a certain period of time before you apply for benefits, that gift may disqualify you from receiving Medicaid benefits. This period of time is called a look-back period. It is based on a formula that takes the amount of assets transferred and divides that number by the average cost of nursing home care in your state. The resulting number equals the amount of months that the applicant will have to wait until benefits may be received. Under the Deficit Reduction Act, this rule applies to any gifts you make within 5 years of the application.

    Medicaid:

    Medicaid is a joint federal and state program that provides medical assistance to low-income persons who are elderly, blind or disabled. However, unless you are among the minority who has long-term care insurance, most individuals contemplating paying thousands of dollars out-of-pocket every month for long-term nursing home care face the possibility of exhausting all available assets and using up their lifetime savings before being able to qualify for Medicaid. A qualified Elder Law Attorney can help your family by using a variety of strategies to help you qualify for Medicaid while preserving assets and savings for heirs.

    Medicaid Triggers:

    The special language in a Living Trust that gives the trustee the authority to do certain types of planning, even though the person applying for Medicaid is not capable of signing the documents or personally doing the planning.

    Medicare:

    A federally funded health insurance program designed for Americans 65 years of age and older. It provides a limited long-term care component. Based on certain criteria, Medicare may pay for nursing home expenses, but with a high deductible, for up to a maximum of 100 days.

    Primary Sidebar

    FREE ESTATE PLANNING WORKSHEET

    There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
    • This field is for validation purposes and should be left unchanged.

    Follow us

    • Facebook
    • LinkedIn
    • YouTube

    TESTIMONIALS

    -Rebecca Javins
    Client Review
    September 2, 2020
        

    I am so glad I was fortunate enough to be referred to Brandon McGee. He listened to my needs and developed an estate plan that is comprehensive and addresses all my needs and concerns. I highly recommend him and his firm. I sleep much better now knowing everything is in place.

    default image
    -Rebecca Javins

    Fort Worth Address

    Fort Worth
    810 W. 10th Street
    Fort Worth, TX 76102
    United States (US)
    Phone: (817) 899-3286
    See Larger mapGet Directions

    Fort Worth Map

    map

    Southlake Address

    Southlake
    101 River Oaks Dr., Ste. 110
    Southlake, Texas 76092
    United States (US)
    Phone: (817) 899-3286
    See Larger mapGet Directions

    Footer

    • Advantages of Working With our Firm
    • About the American Academy
    • Disclaimer
    • Sitemap
    • Contact Us

    Connect to Us

    • Facebook
    • Instagram
    • LinkedIn
    • YouTube
    footer logo

    © 2021 McGee Law Firm
    All Rights Reserved