I came across an interesting blog entry by New Jersey attorney Linda Ershow-Levenberg. She writes about some of the legal complications in answering the question: “If my spouse and I have a pre-nuptial agreement, will I have to use my money to pay for his/her care?” Her response is an example of good lawyering. It is a good read and shows how a simple question results in the very complicated answer “Maybe.” check it out on her blog Linda Ershow-Levenberg blog
In Michigan pre-nups are no protection from Medicaid spend down, though apparently for reasons different from the New Jersey program. Michigan merely inquires whether either spouse can access an account. If the answer is yes, then the account is a “countable asset.”
That is not to say that a pre-nup is not protection from a spouse’s creditors. Medicaid stands on a different footing than traditional marital creditors. A pre-nup may well shelter assets from a spouse’s creditor. But Medicaid is different.
You might understand the difference by a phrase “You want us to pay the nursing home? Well, here are our rules. Don’t like ’em? Bye.” Ever being the lawyer I note that many of the Michigan Medicaid policies conflict with the federal program requirements. And that, is a series of posts for another time.
Let me have your questions or comments,
Jim
