In the state of Massachusetts, the Medicaid Program is called “Mass Health”.
Mass Health provides benefits for people who meet specific eligibility criteria.
With a 401k or IRA, there are two options to choose from: At the right time, just before the application is submitted, coordinate with the financial advisor or holding institution to put the retirement account into payout status, taking the required minimum distribution (RMD).
If this is done properly, then Medicaid will not count the IRA or 401k as an asset.
So, how do elder law attorneys do that with a sizable 401(k) or IRA?
Some veterans are entitled to veterans benefits to pay for their nursing home care.
The answer usually depends upon your marital status, and whether you are already in the nursing home or you anticipate a lengthy stay in the nursing home.
We frequently find that people give assets away under the misconception that if the gifts are less than the ,000 gift tax limit, they will not be penalized if the need arises for long-term care Medicaid.
While some states do overlook gifts (i.e., small gifts usually under 0 or a pre-set limit that the Medicaid caseworker is allowed to overlook), all improper transfers within the look back period are added up and used to determine the penalty period.