Let's say that Dad and Mom are in their late 70's. They each have Wills leaving their estates to each other. Their total community property is valued at $300,000. Mom's health is ailing and a nursing home stay might be in her future.
Dad dies suddenly. Mom and the children come to see me after Dad dies to determine what to do with the assets because Mom cannot live alone anymore. Mom and the children want Mom to refuse (also known as "renounce" or "disclaim") the inheritance from Dad so Dad's assets will go straight to the children and Mom won't have to consume those assets on her care.
I'm forced to tell them, "TOO BAD, SO SAD." The Louisiana Medicaid Eligbility Manual provides that refusing an inheritance is a Transfer of Resources. The way Medicaid looks at is that even though Mom refuses the inheritance, Mom is deemed to have received it and then gave it away. Now they incur the five year penatly period and all sorts of other financial problems (spend all their money, lose their house, receive poor care, etc.)
Moral of the story is: Plan ahead for this. Get the facts from someone you are comforable working with and make informed decisions that can help you receive the care you deserve without depleting your life savings and losing your home.
If you have questions or need help making sure that you or a loved one qualifies for Louisiana Long Term Care Medicaid, here's what you do:
- If you have general questions about Medicaid eligibility in Louisiana, post a comment to this post. I check for comments daily and will be happy to respond to your comment. Other readers may also be able to share similar experiences.
- If you would like to inquire about retaining our law firm to assist you with Medicaid planning, you may email me ([email protected] - put "Need Medicaid Help" in subject line), or you can call our office at 225-329-2450.
Until next time...