My husband has no assets except his social security and pension. It is a second marriage for both of us and I had my own assets that I brought into the marriage, including my house. They have never had my husbands nam themthem. Are they subject to the paydown or can I keep them when I'm looking at medicaid eligibility?
My husband and I had a prenuptual agreement drawn up when we married, and my lawyer thinks that will protect my assets. But she is a small town general lawyer, not a Medicaid specialist, and my husband is in the early stages of dementia (LBD) so I haven't looked into it further yet. For some purposes it depends on whether your state is a community property state. Property aquired before marriage doesn't become community property, unless it is treated as community property, but that could be a big "unless". For example, if you and your husband lived in the house you already owned and used a joint checking account to pay for mortgage and repairs it would become at least in part community property in a community property state.
Here's some information that seems to say you may not be protected. http://aspe.hhs.gov/daltcp/Reports/spouses.htm
I believe this is one of those situations where you MUST find a good elder law attorney who specializes in this area, and the sooner the better. There are different rules for different states, the laws change frequently, and the whole thing is very complicated.
It is my understanding that all assets of both spouses, whether community or separate, are taken into account in determining the available resources of a Medicaid applicant. Prenuptial agreements and life estates are not recognized by Medicaid in their asset determination.
There are certain assets that you can protect for your lifetime -- your home, for example -- and still have your husband qualify for Medicaid. However, once both you and your husband have died, the state can seek to recover from your estate Medicaid funds received by the two of you during your lifetimes.
In some states, you can gift certain assets to children or others who basically hold those assets for you, but the gifts have to be made well in advance of the Medicaid application ... it used to be five years, but that may have changed (and not for the better.) The Federal Gift Tax Exclusion of, what, $12,000 per year now? does NOT apply to Medicaid, and those gifts can be voided if not properly planned. Also, you have to do the gifting in a specific way -- your names cannot be on the titles at all, for example. Trusts must be irrevocable.
Again, this is something you need to discuss with an experienced attorney.
I was told that assets in my name (in a business account, that I earned by my own consulting work) WOULD STILL COUNT as part of the joint assets. Hie thee to an elderlawyer.
Medicaid rules are very complex and vary a lot from state-to-state. Best advice is to get an attorney who is an expert. Mine, for a fixed fee, is taking care of all paperwork with the state through approval and first level of appeal if needed. It may take some homework to find the one that is really an expert in your state. I was fortunate in that a local attorney knew enough to refer me to the expert and not get an education on my dime.
There are two Medicaid tests; one for income and one for assets. Don't get them confused. SS or monthly pension checks are income. Bank accounts, houses, vehicles, investment accounts, etc. are assets. Typically the income test must be passed to qualify--if the monthly income is too high the person won't qualify. But threre are tools to address that. You should expect that the state will view anything that can be turned into cash to be available to be spent on care for the ill spouse. Generally, the family home and one car is excluded for the use of the stay-at-home spouse. There is also a minimum resource allowance for the stay-at-home spouse (about $102K here). Perhaps this minimal overview will help you see why the right attorney is the right answer if the resourses are significant.