Virginia Estate Planning Attorney Comments on Knowing the Rules for Medicaid’s Community Spouse Resource Allowance | Law Firm Newswire

Virginia Estate Planning Attorney Comments on Knowing the Rules for Medicaid’s Community Spouse Resource Allowance

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) October 28, 2016 – Under Medicaid law, there are certain security measures for the spouses of those applying for Medicaid to make certain they possess the necessary minimum support to reside in the community at a time when their husband or wife is in receipt of long-term care benefits, generally in a nursing home.

The spousal protections function in the following way: if the person applying for Medicaid is married, the countable assets of both spouses are combined as of the date on which the ill spouse was admitted to either a hospital or long-term facility in which he or she remains for a minimum of 30 days. This is referred to as the “snapshot” date because Medicaid examines the assets owned by the couple on this date.

Andrew H. Hook, a prominent Virginia estate planning attorney with Hook Law Center, with offices in Virginia Beach and northern Suffolk, states, “Spouses should become aware of the various protections offered by Medicaid, and are advised to consult a Medicaid attorney who can counsel them about the rules that are applicable to their situation.”

To qualify for Medicaid benefits, someone who resides in a nursing home can have a maximum of $2,000 in assets. Usually, the community spouse can retain one-half of the couple’s “countable” assets, up to a maximum of $119,220. The minimum amount a state may permit a community spouse to keep is $23,840.

However, there are some states that are more liberal toward the community spouse. In such states, the community spouse can retain up to $119,220, whether or not this amount is half of the couple’s assets. For instance, if the couple owned $100,000 in countable assets, the community spouse could retain the whole amount, instead of only half.

The community spouse’s income is not considered in deciding whether the applicant is eligible for Medicaid. Only the applicant’s income is counted. Therefore, even if the community spouse still works and earns, for instance, $8,000 per month, that spouse will not be required to help pay the cost of nursing home care for the ill spouse if the ill spouse has Medicaid coverage. However, in some states, if the community spouse’s income is greater than a certain amount, that spouse must make a financial contribution toward the cost of the other spouse’s care.

It is also possible for the majority of the couple’s income to be in the name of the spouse who was admitted to a nursing home. And the income earned by the community spouse may be insufficient to support that spouse. In this case, the community spouse has a right to a portion or all of the monthly income of the spouse in the nursing home. The amount is dependent on what the Medicaid agency thinks is a minimum income for the community spouse. This is called the minimum monthly maintenance needs allowance, or MMMNA, which is calculated on the basis of the community spouse’s housing costs. In special situations, the community spouse may try to obtain an increase in the MMMNA by filing an appeal with the state Medicaid agency or by securing a court order of spousal support.

Rules specific to Virginia

In Virginia, there are specific rules regarding Medicaid’s community spouse resource allowance. The community spouse resource allowance (CSRA) in Virginia ranges from a minimum of $23,844 to a maximum of $119,220. The minimum monthly maintenance needs allowance, or MMMNA, ranges from a minimum of $2,002.50 to a maximum of $2,980.50.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • New Tax Legislation Introduced – What to Expect
    <p>Earlier this year we reported President Biden’s tax plan which included items such as raising the corporate tax rate, raising the highest marginal income tax rate, eliminating the step-up in basis at a taxpayer’s death and revising the estate tax scheme to be similar to the capital gains tax we are currently familiar with. These [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/09/17/new-tax-legislation-introduced-what-to-expect/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/09/17/new-tax-legislation-introduced-what-to-expect/" target="_blank">New Tax Legislation Introduced - What to Expect</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Can a nursing home sue an agent under a power of attorney for unpaid bills?
    <p>If you are the agent under a power of attorney for a parent or loved one, you may often sign documents on their behalf. However, it is important to be careful what you sign – and how you sign it. If you are the agent under a power of attorney for someone who is moving [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/09/09/nursing-home-sue-for-unpaid-bills/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/09/09/nursing-home-sue-for-unpaid-bills/" target="_blank">Can a nursing home sue an agent under a power of attorney for unpaid bills?</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Understanding the Caretaker Child Exception
    <p>Many of our clients have heard of the “five-year lookback” but few understand what it actually means. In essence, since Medicaid is a payer of last resort, the government wants to ensure that people are not divesting themselves of assets with the purpose of impoverishing themselves to establish Medicaid eligibility for long-term care services. By [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/09/03/understanding-the-caretaker-child-exception/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/09/03/understanding-the-caretaker-child-exception/" target="_blank">Understanding the Caretaker Child Exception</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Charitable and Tax Planning with Charitable Lead Trusts
    <p>A Charitable Lead Trust (“CLT”) is tax beneficial way to achieve a donor’s philanthropic goals and pass assets to heirs at a reduced transfer tax rate. A CLT is a powerful tool for donors who anticipate high estate and gift taxes. Conceptually, when the trust is created, the donor designates a charitable beneficiary(ies). The donor [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/08/30/charitable-and-tax-planning-with-charitable-lead-trusts/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/08/30/charitable-and-tax-planning-with-charitable-lead-trusts/" target="_blank">Charitable and Tax Planning with Charitable Lead Trusts</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • The Dangers of Holographic (Handwritten) Wills
    <p>There are two types of wills: (1) holographic and (2) non-holographic. Non-holographic – or typed, witnessed and attested wills – are the most common and the type that people are most familiar with. A holographic will is a will written entirely in the handwriting of the testator and signed by that individual. It does not [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/08/19/the-dangers-of-holographic-handwritten-wills/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/08/19/the-dangers-of-holographic-handwritten-wills/" target="_blank">The Dangers of Holographic (Handwritten) Wills</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>

Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required