[WSBAPT] Medicaid question

[Jane Bitz]

Mr. Vivenzio:

I see that you have not received any responses to your questions. I am an elder law attorney in Spokane Valley, WA.

It is unclear from your question whether your client is or is not currently receiving Medicaid long term care benefits.

If she is NOT currently receiving any long term care benefits from Medicaid: A disclaimer of your client's inheritance will be a gift of her assets to the residuary beneficiaries and thus create a period of ineligibility for Medicaid assistance based on the value of the gifted assets. The period of ineligibility is determined at the time of her application for Medicaid benefits and applies from the time of application forward. There is a 5 year look-back on gifts.

The PR cannot create a Special Needs Trust for the client because the funds are your client's funds although they are currently undistributed from her sister's estate. The same analysis applies for a POI going forward from the date of transfer of the funds to the irrevocable SNT.

The spending spree only makes sense if she IS currently Medicaid eligible. She must report the receipt of the funds to DSHS within 30 days and "spend down" to less than $2,000 in total cash assets by the last day of the month in which she receives the funds (whether or not that is 30 days from the date of receipt) to maintain Medicaid eligibility.

I would suggest an analysis that takes into consideration what kind of care the client may need in the future. The amount of the bequest is important because it may allow her to meet a private pay requirement for assisted living or adult family home care. Many facilities are requiring a private pay period by a new resident before a Medicaid application can be made.

I would recommend that you refer the client to an Elder Law attorney who can do more in depth analysis and planning. Barry Myers office in Bellingham is a good referral.

Jane Bitz.


Jane G Bitz
Of Counsel
Wolff, Hislop & Crockett, PLLC
12209 E Mission, Suite 5
Spokane Valley WA 99206-4824
(509) 927-9700; FAX (509) 777-1800
jbitz at whc-attorneys.com<mailto:jane at jbitzlaw.com>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Anthony Vivenzio
Sent: Friday, June 14, 2019 3:06 PM
To: WSBA Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Medicaid question

Listmates,
We have our first estate planning issue involving Medicaid eligibility.  Client is a 94 year old woman.  Her sister-in-law passed away in 2018 and $50,000 to $100,000 (to be determined).  While client is still relatively healthy for a 94 year old, her children are concerned that she will soon require services that will exceed her very modest resources.  What do you believe might be the best method for her to remain eligible for Medicaid?  Can she disclaim the inheritance in favor of her children?  Can the estate's PR give the money directly to a special needs trust under the trusteeship of one or more of the children?  Should she embark on a spending spree purchasing items qualifying as "eligible"?  Your thoughts would be much appreciated.

Anthony D. Vivenzio,
Attorney and Counselor at Law
PO Box 208
540 Guard Street, Ste. 260
Friday Harbor, WA  98250
(360) 378-6860
vivenziolaw at rockisland.com<mailto:vivenziolaw at rockisland.com>

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