Re: Protecting assets from Medicaid

From: "Lloyd Colston" <Lloyd@Colston.com>
Subject: Re: Protecting assets from Medicaid
Date: Fri, 3 Jul 1998 14:23:22 +0000

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I am a social worker in Medicaid in Oklahoma.  The content of this 
will be based on that perspective.

> Questions:
> 
> 
> 1.  When we transferred all of my father's funds 
> in to joint checking and investment accounts,
> does this start the Medi-Cal clock ticking on the 3 year period
> re gift transfers?  If so, since it is a joint account, do
> all, or only 1/2, of the funds qualify as a gift?

In Oklahoma, the clock is five years, not three.  Make sure you have 
the best information you can get.

> 
> Do I need a letter from my father indicating that it is a gift?
> Would it be better to remove his name entirely 
> from the accounts?

A letter would be good.  Removing his name would be better.  However, 
doing so will restart the clock, IMO.

 
> 2.  We recently purchased a house that we own as joint tennants.
> A non-specialist attorney I spoke to 
> indicated that there was some case law that set a precedent
> such that if the son/daughter of the Medi-Cal recipient is living in the
> recipient's house, the government would not force the sale of the house
> to recover Medi-Cal long term care costs.
> I'm not sure how joint tennancy would affect this, or
> if the child must be a minor.   If this is true, it would
> make sense for us to put $$ into the house (a remodel, addition, etc.).

There have been cases involving this.  My understanding is that the 
government would not place a lien on the house or, at worse, only on 
his half of the property.

You appear to have a misconception.  The government, IMO, can not 
force the sale of a house, especially with you in it.  They can file 
a lien on the property for his half in order to recoup the cost of 
his care.  However, satisfaction of the lien would only come at the 
end of the sale of the house.  You are more than welcome to live 
there from now on.

> 
> If this is not true, would it make sense to 
> have my father quit-claim on the house after we
> do an addition to it.  (But, that would start another
> 3-year clock...).  

Probably.  

Lloyd Colston		Excellence is not an accident
Pryor, OK USA	 	social worker, writer, editor
Member: International Small Business Consortium
KC5FM Home page http://www.Lloyd.Colston.com/



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