[WSBAPT] Medicaid

[Heather deVrieze]

Amanda, I suspect that this contract will be counted as an asset, unless you can prove that the market value is zero, or that it cannot be sold.

With $500K still owing, it wouldn’t seem that it has no value. If there is 5 years of good payment history, it probably can be sold.

You need to closely examine the provisions of WAC 182-512-0350 - SSI-related medical—Property and contracts excluded as resources.

The rules are pretty clear. That said, if you can sell the contract, or get the buyers to refinance, you could very likely invest the proceeds into an annuity that will protect the community spouse.

Heather

Heather S. de Vrieze
Attorney-at-Law
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of amanda_wilson at olypenlawoffices.com
Sent: Thursday, April 30, 2015 5:26 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Medicaid


My clients are a couple, of whom the husband needs to go to long term assisted living and is applying for Medicaid. We are trying to protect some income for the Community Spouse (CS). They do not own a home, they own one car, and they have about $4000 cash in the bank. These assets are not a problem.



The issue is that their income sources are SSI for the wife, SSI for the husband, and a monthly payment from a Purchase and Sale Agreement that they entered into with the Buyers five years ago. The monthly income is approximately $3000/mos. The Buyers are still owing $500K on the property. The property is titled to the Buyers. My clients actually hold the second mortgage (the first mortgage is actually for $70K of the $500K and held by another party).



I had the husband sign an assignment of income to CS. We listed this as an income source and submitted it to DSHS. The checks are currently being made out to CS, only.



I want to argue that this is income, not an asset. Has anyone (on this listserve) ever argued this before? If it is an asset, can it be held by an annuity?



Thanks in advance.

Amanda


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