What is a Medicaid spend down? Elder law attorney Jim Koewler joins Suzanne Newman to answer this question, and shows how it differs if you're single or married.

In the previous segment, we talked about what to do if you're married and you or a senior loved one needs care now — a crisis situation — and have some money available.

With a single person, if they want VA coverage, they have the same asset limits of $130K. If they want Medicaid long-term care coverage, they need to reduce assets to $2K, or their state's level, which is very different from the VA level.

How you do that is through a spend down. A spend down is spending the excess money above your limit on anything that gives you roughly equal value. If you want to hide your assets, for example by buying your son's junk car for $25,000, that is not considered a legitimate expense. Buying hearing aids, extra eyeglasses, dentures, those purchases are OK. Buying ten $1,000 TVs is acceptable as long as you don't give them away. Pre-paying your funeral and your spouse's funeral (you can't over-pay), funeral services, is a great way to use extra money.

You may be required to private pay your care until spend down is finished, in some places, but check those details with a lawyer. Acceptability of donations varies by state, and sometimes even by case worker. Most cases involving church donations have been allowed, but donations have to follow your previous pattern of donation.

Jim Koewler addresses later-life financial and legal issues. Talk to an elder law attorney to guide you in your state with your situation. Learn more at Answers for Elders or at Jim's website.

What is a Medicaid spend down? Elder law attorney Jim Koewler joins Suzanne Newman to answer this question, and shows how it differs if you're single or married.
In the previous segment, we talked about what to do if you're married and you or a senior loved one needs care now — a crisis situation — and have some money available.
With a single person, if they want VA coverage, they have the same asset limits of $130K. If they want Medicaid long-term care coverage, they need to reduce assets to $2K, or their state's level, which is very different from the VA level.
How you do that is through a spend down. A spend down is spending the excess money above your limit on anything that gives you roughly equal value. If you want to hide your assets, for example by buying your son's junk car for $25,000, that is not considered a legitimate expense. Buying hearing aids, extra eyeglasses, dentures, those purchases are OK. Buying ten $1,000 TVs is acceptable as long as you don't give them away. Pre-paying your funeral and your spouse's funeral (you can't over-pay), funeral services, is a great way to use extra money.
You may be required to private pay your care until spend down is finished, in some places, but check those details with a lawyer. Acceptability of donations varies by state, and sometimes even by case worker. Most cases involving church donations have been allowed, but donations have to follow your previous pattern of donation.
Jim Koewler addresses later-life financial and legal issues. Talk to an elder law attorney to guide you in your state with your situation. Learn more at <a href="https://answersforelders.com/jim-koewler/">Answers for Elders</a> or at <a href="http://www.protectingseniors.com/">Jim's website</a>.

Answers for Elders is the North Star in Navigating Senior Care.  Our content is designed to Empower Seniors and their Families through the Daunting Journey of Aging.

Featuring our host, Suzanne Newman and top industry providers across the USA, together, we support, coach and assist seniors, caregivers and their families in finding the best independent solutions in world of aging, with a comprehensive line-up of topics covering Health & Wellness, Life Changes, Living Options, and Money & Law.

Answers for Elders is the North Star in Navigating Senior Care.  Our content is designed to Empower Seniors and their Families through the Daunting Journey of Aging.
Featuring our host, Suzanne Newman and top industry providers across the USA, together, we support, coach and assist seniors, caregivers and their families in finding the best independent solutions in world of aging, with a comprehensive line-up of topics covering Health &amp; Wellness, Life Changes, Living Options, and Money &amp; Law.

Answers For Elders Radio Network

Empowering Seniors and their Families through the Daunting Journey of Aging

For Caregivers: If you're caring for a senior loved one, or navigating later life care, we help make the journey so much easier for you and your family.

For Seniors: We help you be proactive to prepare for your aging years ahead, honoring your wishes.

Featuring our host, Suzanne Newman and top industry providers across the USA, together, we support, coach and assist families in finding the best independent solutions in world of aging, with a comprehensive line-up of topics covering Health & Wellness, Life Changes, Living Options, and Money & Law.

Empowering Seniors and their Families through the Daunting Journey of Aging
For Caregivers: If you're caring for a senior loved one, or navigating later life care, we help make the journey so much easier for you and your family.
For Seniors: We help you be proactive to prepare for your aging years ahead, honoring your wishes.
Featuring our host, Suzanne Newman and top industry providers across the USA, together, we support, coach and assist families in finding the best independent solutions in world of aging, with a comprehensive line-up of topics covering Health &amp; Wellness, Life Changes, Living Options, and Money &amp; Law.

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