It’s possible to shield real estate, savings

    Many people confuse Medicaid with Medicare. One reason is that they sound so much alike.  Another reason is that under certain conditions, Medicare will also pay for nursing home expenses. However, compared to Medicaid, those conditions are limited. When people are looking for a long-term solution for the payment of nursing home expenses, Medicaid is generally the program that is appropriate.
    Applying for Medicaid is a complicated process. You may very well think you are eligible, only to find out that because of something you did years ago or of an asset that makes up less than 1 percent of your net worth, you are not qualified. You may have heard of people who had money and yet were on the Medicaid program for payment of nursing home bills. You may have also heard of people who lost the family homestead or life savings and yet others who were able to somehow save both.
    In some way, it is very much like taxes. Certain people pay what they think is way above and beyond their fair share, or that there are others who pay far less than they should. Tax law is also very complicated. In part, tax policy is not only designed to raise money, but tax policy is also designed so as to encourage or discourage certain kinds of economic activity.
    Likewise, Medicaid policies are designed not only to help pay for medical expenses, but also to encourage or discourage certain kinds of economic activity.
    The solutions available to solve the problem of high nursing home costs differ, depending upon the circumstances of the client. For some, a gifting solution is ideal. For others, the gift must be made along with a loan. For still other clients, perhaps the solution is real estate based. In an emergency, the best solution might be a combination of all of those.
    So what can a person or family do in the face of such complexity? One option would be to throw your hands up in despair. A much better option would be to seek competent legal help and chart a plan whereby the family can take all of the steps that are not only allowed by the law, but actually encouraged as a result of the system that is in place. However, given the complexity of the task and the risks that are involved, it is not something that we recommend people doing on their own.  

    Paul A. Brule is an attorney with the firm of Walsh, Brule & Nault, P.C. in Cumberland. He can be reached at (401) 334-4545.