Limits for qualification
- Non-Exempt Resources
Well Spouse - $92,760 CSRA (2004 Limits)
Institutionalized Spouse - $2,000
Both Spouses Institutionalized - $4,000
Income: Not Counted
- Unlimited Exempt Resources
- Income; Excessive Income Toward Share of Costs
Well Spouse - $2,267/month MMMNA (2004 Limits)
Institutionalized Spouse/Individual - $35/month
Name on the Instrument Rule applies
Joint income to well spouse up to maximum
Exempt Resources
- Home
- Other Real Property - $6,000 or less equity or Business Property (Not Rentals)
- Jewelry and Musical Instruments
- Household Goods and Personal Effects
- One Medically Required Automobile
- Prepayed Funeral/Burial (Irrevocable plans: no $ limits and $1,500 designated burial fund)
- Burial Plot - Recipient and immediate family
- $1,500 Face Amount of Life Insurance (Term Life Insurance excepted)
- Tools of Trade
- Pensions/IRA's/401k's/TSA's
Planning Techniques for Spend Down
- Purchase Home
- Pay Off Mortgage on Home
- Purchase of Interest in Child's Home (provided parent intends to live there)
- Purchase Home Furnishings or Appliances
- Do Home Repairs or Deferred Maintenance
- Pay Off Unsecured Debts
- Do Medi-Cal Planning or Update Estate Plan
- Purchase Musical Instruments or Jewelry
- Prepay Burial Arrangements
- Purchase Automobile
- Make Assets Unavailable: i.e. Place Real Estate on market
- Purchase Immediate Annuity
- Married Couple
- > Purchase may be made for the sole benefit of either spouse
- > Payment may be used to increase income of community spouse to
MMMNA (minimum monthly maintenance needs allowance)
- > Immediate Annuity for life or shorter period of time
- Single Person
- > Immediate Annuity for life or shorter period of time
- > Questionable means of preserving assets
Other Options; Caution; Ineligibility Period May Apply
- Gift giving (Real property appraised at assessed value)
- Outright Gifts
- Irrevocable Trusts
- Exempt Assets
- Nonexempt Assets
- Timing
- Transfer of property for less than fair consideration = gift
- Look back period for Medi-Cal ineligible. 36/60 or number of months the gift money would have paid for care
- Average Private Pay Rate (APPR), $4,415.00 per month (2003 limits)
- Private Annuities
- Self-Canceling Notes
Special Trusts
- Special Irrevocable Trusts
- Income Only
- Income only/Special Power of Appointment
- Special Needs Trust
- Disabled family members
- Surviving spouse's special needs trust (must be Probated)
Legal Actions
- 3100 Petition - Substituted Judgement
- Conservatorship - Substituted Judgment
- State Fair Hearing
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