Medicaid planning: Bad news for Connecticut spouses applying for Medicaid. If one spouse is in a nursing home (“Institutionalized Spouse”) and the other spouse remains at home (“Community Spouse”) federal law allows the Community Spouse to keep ½ of the couple’s non-excluded assets, but subject to a maximum of $109,560.00. This session of the legislature repealed a Connecticut statute (see Summer, 2010 newsletter) that had allowed the Community Spouse, automatically, to keep the full $109,560.00; now we are back to the old system which requires the division of non-excluded assets. Here is an example.
- Joe and Sally own their home, a new car, and have $100,000.00 in cash assets. Joe has had progressive dementia and Sally no longer can care for him at home so Joe is now living in a nursing home.
- The home is protected as an excluded asset because Sally is living there.
- The car is protected as an excluded asset.
- Sally now can keep only 50,000.00, not the full $100,000.00 she would have been allowed under the Connecticut statute repealed as of July 1.
Please contact our office if you need help with long term care issues. We stay abreast of changes in Medicaid law, and have experience preparing and filing Medicaid applications. We are prepared to counsel you on the options you have if a family member requires long term care.