Loss of home is not forgone conclusion

My observation led to a spirited discussion about the various forms that are signed at the time of application and the legal effect of those documents. The various stories about the legions of people who do lose their homes for reimbursement of nursing home expenses could easily have been added to the discussion about a very confusing area of the law.
While it is quite possible to lose a home if you’re receiving Medicaid assistance for nursing home expenses, it is generally very easy to avoid the risk even after being admitted to the Medicaid program. Exactly how that can be accomplished is very dependant upon the circumstances of the individual and his or her family. In other words, there are options.
Many people think there is a simple and straight forward rule for Medicaid eligibility. The story we hear often is that “you can’t have more than $4,000 to be eligible for Medicaid.” In reality, it is far more complicated. The state has different rules for different types of assets such as individual retirement accounts (IRA) and family homes. As a result, certain assets are given much more protection than other assets.  
Unless a person is knowledgeable about how the various rules work, it is easy to lose an IRA or home through inadvertence. By consulting someone knowledgeable about Medicaid, however, assistance for payment of long-term care expenses can be obtained without forfeiting assets the state law allows you to protect. 
The first step is getting good advice from someone with the knowledge and experience to explain all the various complexities of Medicaid, real estate and probate law as well as other areas of legalities that impact your circumstances. Make sure you receive several options, and pick the one best suited for you and your family.


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.