Trying to explain the nuances of Pension Aid & Attendance and the Florida Medicaid ICP program in this article is simply not practical. So the next few paragraphs will lay out the basics. Once these concepts are understood, IT IS CRITICAL THAT THE READER OBTAIN PROFESSIONAL HELP BEFORE IMPLEMENTING ASSET PROTECTION STRATEGIES.
Let’s start with the Veterans Administration Aid and Aid benefit because when a senior may qualify for this benefit, it is often the only benefit they ever needed or it is the benefit obtained and used immediately before needing the Medicaid benefit. ICP.
Homebound Veterans and Aid and Attendance Benefits
It is crucial to understand that Aid & Attendance is a reimbursement program. This means that VA will pay up to its maximum benefit to reimburse a veteran for all medical expenses. Therefore, before applying, money must be spent. Therefore, if a family member or someone else provides care, the veteran must pay for the services in a way that can prove the expense (canceled check, cash not recommended). Obviously, if the care is provided by a commercial homemaker or home health care company, proof of payment will be available. Here is the real point of this paragraph; VA Aid & Attendance is a reimbursement program and benefits will NOT be paid based on future expectations, unless the same type of expenses are already being incurred.
Next, it is extremely important to understand two things
- Currently, the VA does not have set rules about the amount of assets a person can have and qualify for benefits. The general rule is that a couple cannot have more than $80,000 and a single person cannot have more than $25,000. While it’s fine as a general rule, be careful about relying on these numbers, as the older a person is, the lower these numbers get. The basic theory is that the VA will try to estimate how much money the applicant will need to reach the end of their life. Therefore, someone of 90 will need less than someone of 75.
- There is currently no lookback period for gifts. Therefore, someone who gives away excess assets to children or to a properly drafted and selected irrevocable trust (expert attorney is a must) today, can apply for benefits tomorrow without fear of disqualification due to the gift. However, it is absolutely imperative to understand that massive changes to this and other VA assistance and help and stay-at-home policies are underway and are inevitable. Therefore, if a loved one who is a veteran and needs care, served a total of 90 days in the service, one of which was during the war (combat service is not required), and did not have a dishonorable discharge , and you are receiving care, now is the time to look for benefits. Now no later.
The maximum potential benefit for a single veteran is $1,788, for a married veteran it is $2,120, for a surviving spouse of a veteran $1,149, and for two married veterans $2,837.
Medicaid Nursing Home and Assisted Living
There are two main concepts that need to be understood when qualifying for Florida Medicaid Long Term Care benefits.
- There are three types of assets a) exempt b) countable c) non-countable
- Applicant’s income cannot exceed $2,199 in Florida
The entire Medicaid Planning process focuses on reducing income below $2,199 and countable assets below $2,000 for an individual or below $119,220 for a couple. The income reduction is achieved by using a qualified income limit trust. Countable assets are generally reduced by a) giving away money and waiting five years to apply for Medicaid b) giving away money, applying for Medicaid, and then using the gifted money to pay the nursing home bill until the period of ineligibility created by the gift has expired c) exchange accounting assets for exempt or non-accountable assets d) or some combination of the three strategies.
Once the above concepts are understood, planning can begin.
If you need help with VA benefits, the person must be authorized to help with a Veterans Administration application. This includes lawyers and non-lawyers alike. If you need help with a Medicaid application, a person of your choice can help you, but only a lawyer can make initial strategic decisions, create a plan, and draft legal documents. A specialist application company is likely to be most successful in implementing the plan and expedited approvals.