Protecting the Spouse in Long-Term Medicaid Planning: Eligibility, Assets, Resources, Exemptions, and More

This CLE course will provide elder law counsel a detailed analysis of protecting the spouse in long-term Medicaid planning. The panel will discuss the best approaches to leverage the community spouse resource allowance (CSRA) and Medicaid monthly minimum maintenance needs allowance (MMMNA), as well as how to identify exempt assets and avoid spending down exempt funds. The panel will also discuss gifts or inheritance received by the community spouse, asset and money transfers to children, and estate planning issues.

Elder clients rarely plan for Medicaid asset preservation, not anticipating the illness or injury that requires long-term Medicaid planning. Under such circumstances, protecting the spouse should be prioritized. Practitioners advising the senior population must understand medical criteria, qualification standards for Medicaid, how assets are classified, and available mechanisms to protect a spouse. Medicaid has strict financial rules that may require money to be spent down in order to qualify.

Asset protection strategy implementation requires a working knowledge of how the spend-down is determined. Rules for married couples are particularly complicated when one spouse requires long-term care. Counsel's goal is to preserve as much income and assets for the healthy spouse as permitted under the law.

Fundamental approaches include making countable assets unavailable and leveraging the use of the CSRA and MMMNA. Other strategies include transferring the sick spouse's IRA/retirement funds to the healthy spouse, having a valid, well-crafted power of attorney, considering divorce as an asset-protection option, and revising the estate plan using MAPTs, prepaid services, annuities, and pooled trusts.

Listen as our distinguished panel of attorneys discusses tools to assist married clients in Medicaid planning when only one spouse requires long-term care. The speakers will provide tips for leveraging the CSRA and MMMNA, identifying exempt assets, and avoiding spending down exempt resources. The panel will also cover other strategies to maintain assets and income for the healthy spouse.