Oak Lawn Elder Law | Medicaid Spouse Asset Options

A recent ruling in Connecticut may offer new options for Medicaid planning in Illinois. 

Nondisclosure of substantial assets has always been an option for spouses of individuals seeking Medicare assistance in Illinois. If your spouse is seeking Medicare eligibility for long-term nursing home care, you do not have to disclose any asset that has been held solely in your name longer than the applicable “look-back” period (usually 3 years or 5 years). However, for some, nondisclosure comes with a heavy price.  The downside is that if you do not disclose your assets, you will not be allowed to keep any assets worth more than the Medicare spousal allowance ($109,560); your spouse’s income would be paid directly to the long-term care facility; and you might be responsible for separate payments to the Illinois Department of Healthcare and Family Services.

However, a recent ruling in favor of a Medicare recipient in Connecticut may change the effect of nondisclosure of assets here in Illinois. Morenz v. Wilson-Coker, 415 F.3d 230 (2^nd Cir. 2005). An Appeals Court upheld a decision made by a Connecticut Federal District Court that allowed a Medicare Recipient to remain eligible for Medicare benefits even though the recipient’s spouse had separate assets that exceeded the eligibility amount. The Court stated that 1) when the recipient’s spouse signs a refusal to support the institutionalized spouse and 2) the Medicare recipient assigns all support rights the state, that assignment bars Connecticut’s Department of Social Services from considering the assets of the recipient’s spouse from their initial Medicare eligibility.

While a case of this nature has not been tried in Illinois, the Illinois Department of Family Services is working with the Illinois legislature to implement polies that mirror the federal guidelines. It is only a matter of time before these laws are reflected in Illinois.

For more Elder Law Information call:

Law Office of Jonathan W. Cole

5013 W. 95th St.

Oak Lawn, IL 60453

708-529-7794

www.jwcolelaw.com

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Oak Lawn Elder Law | Transfer Your Home on Death by a Special Deed

The Illinois Residential Real Property Transfer on Death Instrument Act allows for transferring Illinois residential real estate at death without the need for probate. The Transfer on Death Instrument TODI must be executed with the same formalities as a will. In addition to regular real estate deed requirements, you must sign the TODI before two witnesses who must attest to the owner’s capacity.  A TODI can be revoked, but revocation must be recorded to be effective. During the owner’s lifetime, the designated beneficiary has no rights or interest in the property. So what does this mean for you?

If you do not want a trust, or can not afford a trust, this law allows you to speak with an attorney about a lower cost option to transfer your home outside of the probate process. An attorney can draft the proper deed and ensure that this act is properly complied with so that you can avoid probate for your home. This deed is a great option for Estate Planners, Clients, and Beneficiaries. It is important to know that this law is brand new. Your estate plan does not include this law. It becomes effective on Jan. 1, 2012. This is why it is important that you speak to an attorney often to ensure that your estate plan includes all of the tools that are currently available to you. Call my office to schedule an appointment to check on the state of your documents.

Law Office of Jonathan W. Cole
5013 W. 95th St.
Oak Lawn, IL 60453
(708) 529-7794
www.jwcolelaw.com