Financial ramifications if wife with Alzheimer’s goes on Medicaid
I have a close friend who is supporting his wife in an assisted living facility private pay with her social security benefits included at the cost of $5,500 a month for the last two years, His wife is 63 and has Alzheimers she is deteriorating but still healthy. His legal team says if he puts her on medicaid he has to put $200,000 of the approximate $300,000 he has left in an untouchable annuity for 20 years! His attorneys say this is Illinois or federal law but he can spend down the remaining $100,000 now. The lawyers already have $18,000 of my friends money to get this started. My friend is 62 and would like to live his life and have enough for himself when he retires, he is working fulltime. What do you suggest is the best route for him to go? I might add there is no love left in the marriage but he still wants to do the right thing for all concerned. Are their other options? Are the lawyers correct?
Terry Says
He has the wrong attorneys — and I’m guessing they are not attorneys, but they are annuity salesmen! Please urge him to stop this process right now. There are elder-law attorneys who are well-versed in what the “community spouse” (the one not needing care) can keep as their own assets. And the state will “look back” for a period of at least 5 years to see if there were assets transferred out of their marital property to enable the ill spouse to qualify for Medicaid.
I suggest he search for a qualified elderlaw attorney at www.NAELA.org — the national academy of elder law attorneys. He can search by location. Do it NOW!!
