Limits for qualification
- Non-Exempt Resources
Well Spouse - $109,560 CSRA (2010 Limits)
Institutionalized Spouse - $2,000
Both Spouses Institutionalized - $3,000
Income: Not Counted
- Unlimited Exempt Resources (DRA Home
Equity <$500k-$750k Exempt)
- Income; Excessive Income Toward Share of Costs
Well Spouse - $2,739/month MMMNA (2010 Limits)
Institutionalized Spouse/Individual - $35/month
Name on the Instrument Rule applies
Joint income to well spouse up to maximum
Exempt Resources
- Home (DRA Home Equity <$500k-$750k
Exempt)
- Other Real Property - $6,000 or less equity or Business Property (Not Rental's)
- Jewelry and Musical Instruments
- Household Goods and Personal Effects
- One "Medically Required" Automobile
- Prepaid Irrevocable Funeral/Burial Plans
(no $ limits and $1,500 designated burial funds)
- Burial Plot - Recipient and immediate family
- $1,500 Face Amount of Life Insurance
(Term Life Insurance excepted)
- Tools of Trade
- Pension's/IRA's/401k's/TSA's
(Annuities in IRA's OK)
Planning Techniques for Spend Down
- Purchase Home (DRA Home Equity
<$500k-$750k Exempt)
- Pay Off Mortgage on Home
- Mortgage Home: Conventional Loans/
Reverse Mortgages
- Purchase of Interest in Home (DRA parent intends to live there
one year +)
- 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
- Life Insurance: Term (DRA
No Reimbursement)
- Annuities
- Married Couple:
- i. Purchase may be made for the sole benefit of either spouse
- ii. Payment may be used to increase income of community spouse to
MMMNA (minimum monthly maintenance needs allowance)
- iii. Immediate Annuity for life or shorter period of time
- Single Person:
- i. Immediate Annuity for life or shorter period of time
- Reimbursement:
- i.
Reimbursement claim for annuities purchased after 9/1/04
- Beneficiary:
- i.
Primary beneficiary - California for incapacitated person
(spouse)
Other Options: *****Caution: Ineligibility Period May Apply*****
- Gift giving:(Real property appraised at assessed value)(DRA:
FMV of Real Value)
- Outright Gifts
- (DRA Cumulative Gifts added together)
- Irrevocable Trusts
- "Half-a-Loaf" (DRA maybe
after qualifying)
- Exempt Assets (DRA - Home equity <
$500k-$750k)
- Nonexempt Assets
- Timing - perhaps 5 years in
advance
- Transfer of property for less than fair consideration = gift
- Medi-Cal look back for ineligible
period. Date of gift - 36 / 60 / or number of months the gift money would have paid for care
(DRA 60 months from qualifying application)
- Average Private Pay Rate (APPR), $6,311.00 per month (2010 limits)
- Round Down (DRA No more
rounding down)
Special Trusts / Contracts
- Irrevocable Defective Income Trusts
(IDIT):
- Income Only - Non-Income House
Trusts
- Special Power of Appointment
- Grantor defective. Substitute
property of equal value
- Special Needs Trust
- Disabled family members
- Surviving Spouse's Special Needs Trust
(must be Probated)
- Contracts
Legal Actions
- Probate Code 3100 Petition - Substituted
Judgment
- Gift to spouse
- Increase Community Spouse
Resource Allowance (CSR)
- Conservatorship - Substituted Judgment
- State Fair Hearing
- Increase CSRA - (DRA
Institutionalized Spouse's income counted first)
- Divorce
-
HARDSHIP
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