There is no denying that nursing homes are expensive. Is there any way to make sure that an individual gets the nursing care that they need without draining away all the assets of a healthy spouse? Of course there is; it just requires a little planning and investigation.
Spousal Resource Allowance
While laws on Medicare differ slightly from state to state, generally the way that Medicare computes a person’s eligibility remains the same. This means that they pool all of the resources of a couple together, then determine eligibility for the individual based on the couple’s assets. While an allowance can be made for the spouse, this is typically based on half of the total assets. It may not amount to a lot in the long term and could leave a spouse financially strapped.
Consider an Annuity
An option that exists would be to convert some jointly owned assets into an annuity that only benefits one spouse. This allows you to use the converted assets into an income stream that solely provides for the healthy partner. Because of this, the money generated by the annuity is considered an income stream specifically for that person and is not counted towards assets for the purpose of determining Medicare benefits.
Because of the difference in laws from state to state different options for annuities might be available or prohibited. The experts at Stano Law Firm can help you if you are considering purchasing an annuity for a healthy spouse, or any other elder law questions.
