Posted by soapymac on June 09, 2000 at 11:24:30:
or at least the ability to get the knowledge you need.
Find out if your insurance broker knows how the medicare/medicaid laws in your state apply to real estate. Unless there has been some changes I’ve missed, the following is a fast course in federal medicare laws.
- If a home is owned by a married couple without Long Term Care insurance in place…and one of them requires a permanent stay in a nursing home while the other still lives in the home…THEN medicare will record an “informational” lein on the home.
At the death of the nursing home patient, and as part of the probate process, if the other spouse is still living in the home, then the “informational” lein is removed. [[[PLEASE-PLEASE-PLEASE check with your insurance broker about this BECAUSE STATE MEDICAID laws can restrict this effect even more!]]]
Now, the spouse has to go into a nursing home. The “informational” lein is again placed on the home. At the death of this spouse, then the probate process would require that the state be compensated for the outlay of money. [[[AGAIN - AGAIN - AGAIN PLEASE check with your insurance broker to verify the laws in your state.]]]
Once you are armed with the information as to whether or not the medicare/medicaid laws apply to the house, it will give you a better idea of whether or not there is a possible opportunity here.
Remember - your mileage may vary…so get some knowledge here before you move on anything.
Now…allow me to put in a shameless plug for YOU to have Long Term Care Insurance. You should also check THIS out with your insurance broker. In qualifying for a Medicare/medicaid funded nursing home stay, these governmental agencies DO HAVE THE RIGHT to inspect your finances. Further, THEY WILL TAKE A BACKWARD GLANCE (3 years back, I believe) to see if you transferred any assets out of the estate to qualify for federal/state funding.
This is where a Long Term Care policy really pays for itself. If you have an LTC policy that will pay out for three years, AND THEN you apply for government funding, THEY DON’T LOOK BACK, and, if my family’s experience is typical, THEY DON’T LOOK IN EITHER!!! This whole area is a speicalty unto itself, so MAKE SURE YOUR BROKER is current on his information.