The cost of long-term care can be catastrophic. Families have lost virtually all of their life savings due to the tremendous cost of long-term care in a facility. Fortunately, there are a number of laws that protect a healthier spouse from impoverishment due to the cost of long-term care.
If a spouse requires long-term care then our government expects that the family will pay for a portion of the long-term care costs. Once the assets have been depleted then Medicaid will pay for that spouse’s long-term care needs. Unfortunately, due to the tremendous cost of long-term care in our Country, the Medicaid spend-down process often depletes the life savings.
One of the most important Medicaid laws concerning assets of a married couple is a federal law that was passed by Congress approximately 35 years ago. According to this federal law, a healthier spouse is entitled to a minimum amount of assets. The law also sets forth a maximum amount of assets that a healthier spouse can keep.
According to applicable federal law, a healthier spouse is allowed to keep the marital residence, unlimited personal effects and household goods, as well as a certain portion of the remaining assets. A healthier spouse is allowed one half of the remaining assets but no more than a maximum amount, as well as no less than a minimum amount. The maximum and minimum amount that a healthier spouse can keep has increased from last year.
Last year the maximum amount that a healthier spouse could retain in assets was $148,620.00. Last year the minimum amount that a healthier spouse could keep was $29,724.00.
Effective January 1, 2024, a healthier spouse can now keep more assets. According to applicable federal law, a healthier spouse is allowed to keep a maximum of $154,140.00. The minimum amount of assets that a healthier spouse can keep is $30,828.00.
Law Office of Donald B. Mark 