If your spouse is in the nursing home we know you are facing financial catastrophe. The average national cost is $9,733 a month, or $116,796 a year. In some states it is much higher. You probably have already been informed by a nursing home social worker or read about your state’s requirements and it is shocking how much they say you must spend. We mentioned the most common option recommended is the irrevocable income annuity. This option requires you to take all your savings over the Medicaid allowed Community Spouse Resource Allowance and purchase the annuity from an knowledgeable Medicaid consultant. The advantage of the annuity is that it is a quick fix but it does not allow you to have access to large amounts of cash all at once. What if you need a new roof or a new car? You may not have enough cash savings left to pay it off and may have to go to a loan. On top of that you may get less of your spouse’s income and more will needlessly go to the nursing home! You should look into the following options to see if they don’t work better for you.
You can save almost all your money by legal two ways: 1) The Court Order of Support. All states must recognize this option. 2) The spouse Sole Benefit Trust. This is the best option, but only a few states allow it.
The Court Order of Support requires you to hire an experienced elder law attorney for the best result. You will have to go to court, have hearing and the judge will make a decision. The Court can order the Medicaid agency to allow you to save your money and get more of your spouse’s income. Take note that Some judges are very understanding, others aren’t.
The sole benefit trust option allows you to have your elder law attorney set up this asset protection trust so that you can have the money you need when you need it. And, this is good, you still get your spouse’s income. As we said above, not all states allow it. Yet.
I’ve written on the subjects before. Just do a search of my website. And, we have published nationwide! Look at my articles on the National Academy of Elder Law Attorneys website. That’s www.NAELA.ORG
More later, and
All the Best to You,
Jim
