Medicaid Planning - When considering whether or not you will be able to afford (or how long you can afford) the payment of the costs associated with nursing home care, most individuals (except those who are fairly wealthy) anticipate that the costs of the care will eventually exceed the assets available to the disabled person and his/her spouse. Therefore, most individuals look into qualifying for Medicaid. Medicaid is a joint program between the federal government and each state that is "needs based." This means that you must "spend down" almost all of your savings before you will qualify.
Some of the current exemptions (Illinois - 2023) which Medicaid allows the applicant (if you are not married) to keep are as follows: • Prepaid burial plan (up to $4,244 per person) • Burial spaces (not to exceed $1,500) • Motor vehicle (not to exceed $4,500 in value) • Personal property (not to exceed $2,000 in value) • $2,000 in cash or equivalent.
If you are married, then the "community" spouse is allowed to retain (in addition to the above): the marital home (up to a value of $688,000), up to $120,780 in other assets and up to $3,715 in monthly income. If you have more than that, the State of Illinois will require that you "spend down" assets to that level before you qualify for Medicaid.
Medicaid planning involves gifting of assets before making an application for benefits. The general rule is that a gift must be made at least 60 months prior to applying for benefits - however there are exceptions. Property Powers of Attorney are often utilized to make gifts once a person is no longer competent. However, this area is very complex and ever-changing, so the only way to properly plan for you is to schedule an appointment to discuss your situation.