How do I avoid Medicaid estate recovery in NC?

Trusts in North Carolina. Trust often are a preferred way of protecting the home from estate recovery, using an irrevocable trust. Trusts are more flexible and protective than life estates, but they require drafting of a comprehensive trust agreement with the right provisions.

Can a nursing home take your home in NC?

Given the rules for Medicaid eligibility, the only property of substantial value that a Medicaid recipient is likely to own at death is his or her home. Under current law, the state may make a claim against the decedent’s home only if it is in his or her probate estate.

Can Medicaid Take Your House in NC?

The State will not take your house. The State’s claim will likely result in it being sold (depending on the decision of your Executor — which will be discussed in my next post), but it cannot take the full amount of sale proceeds unless the sales price is only equal to or is less than the amount it paid on your behalf.

Can a community spouse live in a nursing home?

No. If you, the community spouse, continue to live in your home, you will not lose it, regardless of the value. In addition to your house being exempt (a non-countable asset for Medicaid eligibility), other assets are also considered exempt. Therefore you are permitted to hold onto them.

How does Medicaid work in North Carolina for spouses?

If you have a spouse who is going to continue to live independently while you go to a nursing home, then North Carolina will allow you and your spouse to keep more income and assets to support that spouse. Income. First, your spouse (called the “community spouse”) may be allowed to keep some of your income each month.

Can a spouse in a nursing home keep their assets?

Is my spouse in a nursing home able to keep any assets? Yes, your spouse can keep a minimal amount of assets. This figure varies by state, but in most states, the spouse entering the nursing home can keep $2,000 in assets. What can be done to protect my assets? You cannot simply give your assets away to qualify a spouse for Medicaid.

Can a healthy spouse pay for nursing home care?

You, as the healthy spouse, have a monthly income of $2,800. Therefore, your income is $100 / month over the MMMNA, and your spouse cannot supplement your income with his or her own income. However, you can keep all your income and your spouse will have their nursing home care paid for by Medicaid.

No. If you, the community spouse, continue to live in your home, you will not lose it, regardless of the value. In addition to your house being exempt (a non-countable asset for Medicaid eligibility), other assets are also considered exempt. Therefore you are permitted to hold onto them.

How much can a community spouse keep in North Carolina?

In 2021, the community spouse (the non-applicant spouse) can retain half of the couple’s joint assets, up to a maximum of $130,380, as the chart indicates above. There is also a minimum CSRA, which is set at $26,076, and enables the community spouse to keep 100% of the couple’s joint assets up to this amount.

What happens if my spouse goes to a nursing home?

When your spouse goes to a nursing home, you can retain some income and assets and still qualify for Medicaid. Medicaid does not require a healthy spouse to give up all of her income and property just so the needy spouse can qualify for long-term care through Medicaid.

You, as the healthy spouse, have a monthly income of $2,800. Therefore, your income is $100 / month over the MMMNA, and your spouse cannot supplement your income with his or her own income. However, you can keep all your income and your spouse will have their nursing home care paid for by Medicaid.