Income & Asset Tests
Medicaid is a program designed to help the under privileged. As such, Medicaid has applies income and asset tests in order to assess qualification. A nursing home resident cannot have more than $1809.00 per month (2006) in gross income from all sources. If you earn more than this amount, a Qualified Income Trust (QIT) may enable you to qualify.
A QIT receives all of a resident's income and then issues a $35.00 personal needs allowance check to the applicant with the remainder going to the nursing home (except for the option of a deduction for the applicant's supplemental insurance costs or for spousal diversion).
However, upon the death of the recipient, the excess that remains in the trust is paid over to Medicaid for its expenses. Only after Medicaid is 100% reimbursed, will the trust distribute any remaining monies to heirs. If there is not enough in the trust to reimburse Medicaid, then Medicaid may file a claim against the probate assets of the recipient.The Asset Test
If you qualify under the income test or can create a QIT, you must still qualify under the asset test. Asset test limit vary between single and married individuals. This is so a survivor of a Medicaid recipient is not left destitute. The asset test limit for an individual is $2,000 in countable assets and $99,540 (2006) in countable assets for a community spouse (not in a facility).
If you are a concerned relative or friend of an elderly person who seeks assistance with Estate Planning, Elder Law, or Medicaid, Contact Us Online or Call Us at (904) 355-8888 to set up a consultation and receive our Free North Florida Nursing Home Guide.