Spousal Refusal
Click Tree of Life below to hear Holly speak on Spousal Refusal
In the Medicaid application process, there are certain limits on assets and income that an applicant is allowed to retain and still be eligible for Medicaid. However if there is a spouse involved and the spouse is not applying for Medicaid, the spouse has the option of signing a Spousal Refusal form. This is simply a statement that the spouse of the applicant needs the income and assets that are remaining after the ill spouse is accepted on Medicaid. There are unlimited asset transfers allowed between spouses. There is no penalty or waiting period. However the legal unit in Medicaid reserves the right to sue the well spouse for the assets retained above the Medicaid allowable rate for a couple, $115,000. An option for the well spouse is the create a Medicaid allowable Immediate Income only Annuity. This vehicle must be viatically sound by the Social Security Viatical tables. The money put into the income only annuity immediately becomes an income flow for the life expectancy of the well spouse. All the money deposited must be paid back to the spouse on a monthly basis during their life expectancy. In this way the well spouse is within the Medicaid allowable guidelines while saving their assets with the conversion to an income flow. The well spouse may be asked by Medicaid to contribute 1/4 of their income above $2,800 a month to the ill spouse if the ill spouse is living in a nursing home. If the ill spouse remains at home with the well spouse, the well spouse still needs to sign a spousal refusal form if the well spouse decides not to apply for Medicaid. In the case of the spousal couple remaining in their home together, Medicaid expects both spouses to apply for Medicaid together. So regardless of the income and assets, the well spouse must sign a spousal refusal form if they do not intend to apply for Medicaid with their ill spouse. For more information on Spousal Refusal, or to create a Medicaid Immediate Annuity, call me at 718-442-2414. Warmly, Holly