Medicaid divorce

easy23 · January 27

Someone suggested that I get a medicaid divorce to protect my assets and qualify my DH for medicaid. Has anyone ever done this or is it an obsolete idea?

the bff · January 27

easy23, please don't listen to "someone." A major federal law in 1988 got rid of the need for a "medicaid divorce," allowing the community spouse to retain a lot of assets so as to not impoverish said spouse. Each state has its own tweaked version, so please consult a qualified elder law attorney who can direct you further. Do not wait, knowledge is power, and there may be many options open to you if you start soon. (I am a retired attorney who did Medicaid planning work. The one thing that drove me nuts was people waiting too long to seek my counsel, often where I couldn't help much.)

gampiano · January 27

Wow, this is what my mom was advised to do back in 1973, when my dad was in year 10 of Parkinson's disease. She didn't go through with it, but one of our friends did, and her ex husband was able to go on Medicaid. I think there are other ways to achieve the same end, (GOING TO A CELA) but it's amazing how out medical "system" hasn't changed in 50 years . Divorce may yield a faster result.

By the way, because my mom was unable to pay for nursing home, and refused to quit her job as a nurse and go on welfare so that they could get Medicaid coverage, she ended up being sued by the state in family court for non support of her spouse. The judge threw the case out, and told my mom to go back to work. Miraculously my dad began receiving Medicaid. This wouldn't happen today for sure.

the bff · January 27

easy23, please don't listen to "someone." A major massive overhaul in federal law in 1988 fixed a lot of the issues. The community spouse is able to keep a significant portion of assets. Each state has its own tweaked version, so please consult with a CELA. (I am a retired attorney who did medicaid planning and the one thing that drove me nuts was people waiting too long to seek me out. Knowledge is power, and the sooner you learn your options, the better.)

???? · January 27

I agree, don't listen to others. Go see an eldercare attorney.

Jeanne C. · January 27

Please be careful. A CELA is definitely the way to go. They will understand the current laws and Medicaid process in your state. I was able to get great Medicaid benefits for my husband while legally and cleanly maintaining our assets.

JoseyWales · January 27

Each state has different rules, so listening to anyone here is not going to get you the answers you want.

I didn't divorce my husband, but did file for a legal separation WITH THE ADVICE OF MY CELA in order to transfer IRAs out of my husband's name into mine to protect them, so that DH could qualify for Medicaid. After everything was transferred, we reversed the separation. That was nothing I could have ever done on my own, or even have KNOWN to do, so that CELA was well worth the thousands of dollars I paid him.

harshedbuzz · January 27

This is a question for a CELA.

When dad was diagnosed, I took mom to see a CELA. Mom and dad had a volatile relationship-- they had some great times and some that would have been dealbreakers for any rational person. After my sister died in 1994, my dad went to a dark place and began drinking heavily. The drinking led to an alcohol-related dementia in addition to the onset of Alzheimer's which made him even harder to live with. He'd alienated friends in 3 states (they kept moving for a do-over) as well as both their families; I was the only one who visited a few times a year mostly to keep an eye on the situation as my spidey-sense had been triggered.

When we finally got dad diagnosed in 2016-- 10 years after I first suggested an evaluation-- mom still thought she might be better off solo as she was very angry in the context of the "self-inflicted" dementia. When we saw the CELA we discussed this frankly-- a divorce would have been costly especially given that dad would need his own representation and guardian ad litem. He would have taken at least half their assets and lost her excellent retiree health benefits. Additionally, the lawyer didn't think she'd be named his guardian in the event of a divorce meaning I would be "burdened" with it. The bottom line is that dad and I never had an easy relationship and she didn't trust me to do right by him-- and-- given his rate of progression, she felt she might come out better financially if she stayed married and inherited what they owned jointly. Her gamble paid off financially for her-- she kept him home until near the end. More importantly, I don't think she wanted to be divorced. Her view of the last 15 years of their marriage has softened now that she understands much of what he did was dementia-driven.

HB

Ed1937 · January 27

Just another voice suggesting seeing a CELA (certified elder law attorney). They are the ones who know the laws in your state, and how to legally protect as many assets as possible. You will probably be surprised at how much they can do for you. Just consulting with a CELA should make you feel like you had a heavy weight lifted off your shoulders.

easy23 · January 27

Thanks for your responses!

My CELA asked me if I wanted a divorce when I went to her office in 2020. I didn't realize at the time that there was such a thing as a medicaid divorce, so I said no. My husband has not had the need, yet, to file for medicaid. I guess it's time to revisit the CELA.

Hope5757 · January 27

https://alzconnected.org/discussion/comment/196085#Comment_196085

What a realistic but gentle response HB. I’m not the OP but benefited much from your response. Thank you.

jfkoc · January 27

Here is the link;

National Elder Law Foundation (nelf.org)

CStrope · February 15

I have consulted a CELA, but at that time was not ready to apply for Medicaid. The closer I get to placing DH, the more I know that I need to get the Medicaid situation figured out.

Has anyone ever used or heard of a company that just assists with Medicaid application for placing a loved one? I found the link on a web site, and was wondering if it is legit or if it is a scam. I hate to have to go back to the CELA and spend so much money if this would be a legit and less expensive way to fill out the Medicaid forms. The web site was eldercareresourceplanning.org

elainechem · February 15

I'm not a lawyer, but I believe that most Medicaid programs conduct a five year look back to see if any assets have been transferred with the express intent of making someone eligible for Medicaid.

Jeanne C. · February 15

https://alzconnected.org/discussion/comment/198295#Comment_198295

I would be very skeptical of this. It sounds scammy. Our CELA had an in-house financial planner to manage the medicaid application.

wose · February 16

If it helps at all, I’m in PA and had a meeting today with my CELA. He said a divorce would not fly with the state. They watch your every move and you basically can’t have any contact. I did put the house in an irrevocable trust today, so the five year look back in assets begins. Everything you own could be put in that trust if you wanted. If we don’t make the five years, then we would have the Medicaid application spend down route. I’m sorry, it sucks. It was 5000.00 for the trust and updated wills, poa’s and medical directives. It broke my heart to remove him as my poa and medical decision maker but I had to. He didn’t even understand sitting next to me. Then, if we don’t make it 5 years it would cost about 12000.00 for the next step.💙

wose · February 16

M1 · February 16

good for you wose, glad you got it done and glad he was okay with it.

PJ52 · March 3

https://alzconnected.org/discussion/comment/196097#Comment_196097

That’s exactly how I felt after our meeting with the elder law attorney! Like a huge weight had been lifted. And, it just feels good to be getting things done. The fee for the plan we chose is rather expensive, but worth every penny for peace of mind now and ease of management in the future!

Sunnyside42 · March 3

I have an appointment with a CELA on March 29. I don’t know what to expect or how she can/will help. We already have a Trust, powers of attorney etc. I guess my big question is how do we not go broke should DH need Memory Care for an extended time, or even home help which can be expensive. He is 86 and I am 81. We are both in pretty good physical shape but still, our ages are our ages. Financially we are “in betweener”…too many assets to qualify for Medicaid (California), but still possible to use what we have in order to qualify. I know some of the rules changed January 1, so this is what I hope to find out…what our options are. For 4 years now I have been operating in a gray area of the financial unknown, so it is about time to deal with whatever the reality is.

Medicaid divorce

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