How Can I Protect My Spouse’s Assets from Medicaid in Wisconsin?

Question from Rlle, How Can I Protect My Spouse’s Assets from Medicaid in Wisconsin?

Answer from AI:

Medicaid, a joint federal and state program, can help with medical costs for some people with limited income and resources. However, when one spouse needs long-term care, the other spouse may worry about losing their assets to cover the costs. In Wisconsin, there are legal strategies to protect a spouse’s assets from Medicaid, often referred to as “spousal impoverishment protections.”

What are Spousal Impoverishment Protections?

Under federal law, certain protections are in place to prevent the spouse still living at home (the “community spouse”) from becoming impoverished when the other spouse enters a nursing home. These protections include:

• The Community Spouse Resource Allowance (CSRA): This allows the community spouse to keep a certain amount of the couple’s combined assets, without those assets being considered by Medicaid for the institutionalized spouse’s eligibility.
• The Monthly Maintenance Needs Allowance (MMNA): This allows the community spouse to receive a portion of the institutionalized spouse’s income, if the community spouse’s income is below a certain level.

How Can I Implement These Protections?

To implement these protections, you may need to do some planning. Here are some general steps:

1. Calculate your total countable assets: This includes most of your property and investments, but there are some exceptions, like your primary residence and personal belongings.
2. Determine the CSRA: In Wisconsin, as of 2021, the community spouse can keep half of the couple’s combined countable assets up to $130,380. This amount can change annually.
3. Consider a Spousal Annuity: If your assets exceed the CSRA, you might consider purchasing a Medicaid-compliant annuity. This converts excess assets into an income stream for the community spouse, which Medicaid cannot touch.
4. Apply for Medicaid: Once you’ve arranged your assets to meet the eligibility requirements, you can apply for Medicaid.

When Should I Seek Legal Advice?

Medicaid rules are complex and the stakes are high. Mistakes can result in a denial of benefits or a long penalty period. Therefore, it’s often wise to consult with an elder law attorney who is familiar with Wisconsin’s Medicaid rules. They can help you understand your options and develop a plan that best protects your spouse’s assets.

Please note that this information is a general overview and not legal advice. Laws can change, and each situation is unique. For personalized advice, consult with a legal professional.

For more information, you can visit the Wisconsin Department of Health Services Medicaid page or the federal Medicaid Spousal Impoverishment page.