Legal Options exist for Families Facing Nursing Home

As an elder law attorney practicing in Southern Indiana since 1988, I have seen the panic and desperation in clients’ eyes when they hear “spend down to $2,000.”  Having paid taxes their whole lives, built a modest nest egg, and now they are told the nursing home gets it all before Medicaid would step in. But that is not how it has to be. If you plan, even inside the five-year look-back window, Indiana law gives married couples, as well as single or widowed individuals powerful ways to protect what they have earned.

Start with married couples. The healthy spouse at home keeps the house, the car, furniture, and a generous chunk of other assets under the Community Spouse Resource Allowance (CSRA). Anything over the CSRA limit can be repositioned with tools like a Medicaid-compliant promissory note to protect almost all of the couples’ savings. I just helped a couple from Jasper keep the bulk of their life savings this way; the wife protected the home, receives steady income, her husband’s care is covered, and their son repays the promissory note to his mother over time.  The healthy spouse doesn’t have to end up destitute as many commonly believe.

Single or widowed? You can often protect half your assets or more. A similar promissory note approach works, except that it involves gifting in concert with the promissory note.  And, yes, this can be done within the five-year look-back window. I recently met with a widowed client and her family from Mount Vernon.  She was recently admitted to the nursing home, and they were afraid they would lose everything. We implemented a legal gifting plan utilizing a Medicaid-compliant promissory note, and Medicaid now covers her care.  She was able to protect over half of her life savings to pass along to her family. Perfectly legal, perfectly fair.

Medicaid is not charity; it’s insurance you’ve paid for since your first paycheck. I’ve watched families breathe again when they realize their home and life savings don’t have to disappear.

I have a dedicated team solely devoted to protecting the assets of my clients who find themselves needing nursing home care.  My dedicated team has 16+ years in addition to my experience in handling these types of cases.  If you’d like to learn how we may be able to help, call 812–423-1500 for a free consultation.