In New York, a person who is applying for Medicaid is allowed to keep their main home. This means that if a person sells their primary residence, all of the money from the sale will be exempt. Also, they will lose the exclusion on capital gains of $250k or $500k, depending on which is higher. But they can hold other assets in a trust that can't be changed.
As we've already said, Medicaid is for people with low incomes and few assets. So, if a person dies and doesn't leave anything behind, Medicaid won't be able to get any money from their estate. Also, Medicaid won't be able to get money back from a spouse or child who dies before the person who gets Medicaid. Medicaid can only get cash back from assets in which the recipient had a stake at the time of death.
The government has limits on how many assets a person can have when applying for Medicaid. The most you can own is $2,000. This doesn't include money set aside for funeral and burial costs, though. For this, a person can put up to $1,500 in a separate bank account. But assets can't be given away or sold for less than what they are worth on the market. This goes against the "look-back" rule, so the person won't be able to get Medicaid for a while.
A house may be one of a person's assets. A person with a life estate can own the home, but to protect it, it must be put in a NY Medicaid asset protection trust. If a person can't afford a Medicaid-approved life estate, they may be able to transfer the property to a Medicaid asset protection trust.
Even though this can be complicated, there are ways for a family to keep their assets and still qualify for Medicaid. Often, it's easier to get rid of loved ones than to support them. But there are ways to protect your assets and ensure your loved ones are eligible for long-term care. Again, it's a matter of making plans. You can pay for long-term care with any extra money you have.
Cash, stocks, investments, vacation homes, savings, checking accounts, and other types of property are all things that can be counted as assets. There are some exceptions, though. Some examples are IRAs set to pay out, 401Ks, and personal items. There is also an exception for the applicant's main home, as long as it has an equity interest of less than $955,000. (after debt).
In New York, Medicaid is available to help people who need help with their daily lives. To get Medicaid, a person must have enough money and resources to take care of themself. Also, an applicant can't have more than $16,000 in assets, which includes bank accounts, annuities, and life insurance policies with cash values. Even though this rule is stringent, it will help a person get care while staying in their own home. Medicaid will try to get the house back after a person dies. But there are ways to avoid this, like getting an attorney specializing in elder law.
The Medicaid Excess Income Program is an excellent way for people with many medical bills to become eligible for Medicaid. For example, a single person in New York can only get $934 per month, while a couple can get $1,367. Applicants may also utilize the "spend down" amount, which is the gap between their monthly salary and the income limit for medically needed people. This amount is like a deductible and needs to be paid before you can get Medicaid.
Each state has rules about who can get help and how much they can spend. Talk to a Medicaid planner, an estate attorney, or your local social services office to determine if you qualify. If you live in New York and want to apply for Medicaid, a Medicaid planner can help you find exactly what you need to do. This is a highly complex process, and a professional can help you.
Another option is to use a trust. It can cut down on the amount of time and money needed to manage an estate. It can also save money on income, gift, and estate taxes. Another good thing about Medicaid Trusts is that they are irrevocable. Any assets put into the trust can't be taken back.