1662 East Centre Avenue
Portage, MI 49002
Ph: 269.324.7344
Fx: 269.324.2767

4625 Beckley Road
Building 400, Suite 4003
Battle Creek, MI 49015
Ph: 269.968.1101
Fx: 269.968.9505


Asset Protection Planning
For patients in or entering a nursing home

Nursing home care can cost over $100,000 per year! This can quickly deplete your life savings. However, with our help, you may be able to retain MOST or ALL of your assets. This applies if you are already in a nursing home or may have to go into a nursing home. Medicaid may be the only alternative for paying for nursing home costs without becoming destitute. Medicaid is a government program that pays the cost of nursing home care. As an attorney who has been practicing Asset Protection Planning for 16 years, I have saved clients hundreds of thousands of dollars. I have the expertise to save all or a large portion of your assets!

Generally, a Michigan resident who is age 65 or older, or disabled, may qualify for Medicaid if the financial criteria for asset and income limitations are met. The asset limit is $2,000 for an individual. Assets taken into account for the asset limitations are called countable assets. Only the assets of an adult and his or her spouse are counted. Examples of countable assets include: cash, stocks, bonds, land, IRAs and pension plans. Basically, anything that is not exempt is a countable asset. Examples of exempt assets include: a homestead and adjoining land*, household furniture and one vehicle*. This means that a person could have $2,000 in cash, a home* and furnishings, a car*, and still qualify for Medicaid. If a person has more than $2,000 in countable assets, then the excess money/assets must be spent down to the $2,000 limit. Through proper Asset Protection Planning, there are legal options available for the family to save up to 100% of the excess money/assets.

For married couples, the asset and income limitations are different when one spouse goes into a nursing home. The spouse that stays home, called the community spouse, is allowed to keep certain assets in order to support himself or herself. Generally, this amounts to one-half of the couple's countable assets with the minimum that the community spouse can keep being $23,844 and the maximum being $119,200. The nursing home spouse is still only allowed to keep a maximum of $2000 in countable assets. The couple must spend down the excess money before they can qualify for Medicaid. Through proper Asset Protection Planning, there are legal options available for the family to save up to 100% of the excess money/assets.

Any person who disposes of assets for less than fair market value for the purpose of qualifying for Medicaid has made a divestment. A common situation is giving assets away to family members, such as transferring money or signing off property. There is a penalty for divesting assets within 60 months of applying for Medicaid.

As you can see, Asset Protection Planning can be quite advantageous if done properly and quite detrimental if not. Through Asset Protection Planning, the law provides options for you and your family to retain assets and still qualify for Medicaid to pay for nursing home care. You can have peace of mind that you are not destitute.

You may call this office to set up a consultation to see if Asset Protection Planning will be beneficial to you and/or your family.

Based on requirements for the State of Michigan in the year 2015.

This information is only a brief overview and is not intended to be legal advice.


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