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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 37059
Experience:  30 years in civil, probate, real estate, elder law
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MY FATHER HAS BEEN IN A NURSING HOME SINCE AUG 2014.

Customer Question

MY FATHER HAS BEEN IN A NURSING HOME SINCE AUG 2014. MEDI-CAL HAS PAID THE BILL. HE OWNS A HOME THAT NEEDS TO BE SOLD SINCE THERE IS NO MONEY TO MAINTAIN IT WHAT HAPPENS TO THE PROCEEDS OF THE SALE? I ESTIMATE HE OWES MEDI=CAL ABOUT $80,000. PROCEED OF THE SALE SHOULD BE $120-130,000.
Submitted: 9 months ago.
Category: Legal
Expert:  Ray replied 9 months ago.

Hi and welcome to JA. Ray here to help you today.

Expert:  Ray replied 9 months ago.

In this situation he would receive the balance

of funds after Medical has been repaid and

would have to go private pay for a period.

Expert:  Ray replied 9 months ago.

He would be ineligible until his resources went back under the MediCal limits.

Expert:  Ray replied 9 months ago.

I would strongly consider just letting the house go here because

MediCal would get most of it.

Expert:  Ray replied 9 months ago.

The loss of eligibility would make him private him

private pay here and eat up the rest.

Expert:  Ray replied 9 months ago.

Overall he may be better letting it go for taxes and staying on

MediCal.He really wouldn't benefit much after it is all

said and done.

Expert:  Ray replied 9 months ago.

House is exempt until sold.

The following property is generally exempt and therefore not counted in determining Long Term Care Medi-Cal eligibility:

  • The home: totally excluded, if it is the principal residence. The applicant must state an “intent to return to the home.” Includes mobile home, houseboat, or an entire multi-unit dwelling as long as any portion serves as the principal residence of the applicant. (See "Your Home & Medi-Cal" for more information)
  • Other real property: may be excluded if it is used in whole or in part as a business or means of self-support (you should see an attorney if you have other real property).
  • Household goods and personal effects: totally exempt.
  • Jewelry: for a single person, wedding, engagement rings and heirlooms, and items of jewelry with a net market value of $100 or less are totally exempt; for spouses, there is no limit on exempt jewelry for determining the institutionalized spouse’s eligibility.
  • One car is generally exempt if used for the benefit of the applicant or if needed for medical reasons.
  • Whole life insurance policies with a total face value (also called “combined death benefit”) of $1,500 or less.
  • Term life insurance: totally excluded.
  • Burial plots: totally excluded, includes headstone, crypts, etc.
  • Prepaid irrevocable burial plan of any amount and $1,500 in designated burial funds. These designated funds must be kept separate from all other accounts.
  • IRAs and work-related pensions: if in applicant’s name, the balance of the IRA or the pension is considered unavailable if the applicant is receiving periodic payments of interest and principal. If in the spouse’s name, the balance of the IRA or pension is totally exempt.
  • Non-work related annuities: the balance of certain types of annuities may be exempt (see CANHR’s fact sheet, “Medi-Cal for Long Term Care” for more information.) You should see an attorney if you are considering buying an annuity – call CANHR for a referral.
  • Up to $2,000 in cash reserve, e.g. in savings, checking, etc., for the Medi-Cal applicant.
  • Community Spouse Resource Allowance (CSRA) for 2015: the spouse at home can keep the first $119,220 in assets, and may be able to keep more if his/her income is below the Minimum Monthly Maintenance Needs Allowance (MMMNA). For 2015 this amount is $2,981. Average Private Pay Rate (APPR) for 2015 is $8,092.

He has to spend down here to $2k.Anything he gets has to be paid for private care until he is under $2k.If he is currently on MediCal you should seriously consider letting the house go and keeping him on the program.He really won't net anything here, private pay would eat this up in a month or two here.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.I know this can all be overwhelming.

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