Tough Medicaid choice.

From: <Memills@aol.com>
Subject: Tough Medicaid choice.
Date: Mon, 13 Jul 1998 18:10:49 EDT

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I appreciate the practical feedback regarding my previous Medicaid
question.  I've found a couple of books (noted below) that
may help others in a similar situation.

Given that I am the only child of an 87 year old father
with a high risk of stroke, with joint ownership of
assests and a house, the choice to shelter funds
from Medicaid seems to come down to these 2 options:

1.  Have my father "gift" his entire estate to me now, 
    and hope that he does not need long term care within
     the next three years.  Or,

2.  Pay down the mortgage on our jointly owned house.
     But, after his death, the state may place a lien on
     it (but not sell it because I am a joint owner and live there).
     In this case, 1/2 of his estate is sheltered.  Don't 
     have to wait 3 years for this option to be effective -- it
     is effective immediately.

I guess a 3rd option would be an even split between the
two above options to hedge bets (?).   

Or, have him
gift estate to me now (to start the 3 year clock ticking),
BUT should he need care before then, give funds back
to him to use to immediately to pay down the house 
mortgage.

Any other ideas anyone might like to offter?

  -- Mike Mills

Below are the books I mentioned that others may wish to read:


The Medicaid Planning Handbook : A Guide to Protecting Your Family's
Assets from Catastropic Nursing Home Costs (2nd Rev Ed)
by Alexander A., Jr. Bove  (Published 2/96)

Avoiding the Medicaid Trap : How Every American Can Beat the
 Catastrophic Costs of Nursing Home Care  by Armond D. Budish  (published
5/96)




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