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T RYING TO NAVIGATE the world of Medicaid and long-term care planning can be over whelming. This two-part article will provide a summary of the Medicaid rules and offer some planning options. There is a limit on the assets an individual may have in his or her name in order to be eligible for Medicaid. In the case of a married couple, the non-institutionalized spouse is permitted to keep the house, one car and the lesser of one-half of the value of the couple's countable resources on the snapshot date or $119,220 — the Community Spouse Resource Allowance (CSR A). The snapshot date is the first day of the first thirty days either spouse spends away from the home due to illness. In addition to the CSRA, the community spouse is entitled to keep a portion of the institutionalized spouse's income to bring the community spouse's income up to the Minimum Monthly Maintenance Needs Allowance (currently $2,981). The institutionalized spouse may keep $1,500 in assets. A single individual may keep $1,500 and a car. Generally, the house is exempt for the first 13 months after applying for Medicaid. It must then be listed for sale. In both married and single cases, the exemption for the house only covers up to $552,000 of equity. How the house is titled can create issues as well. The house will not be exempt if it is owned by a trust. Medicaid currently has a five-year look-back period. Any gifts that are made more than 60 months before filing for Medicaid do not need to be disclosed. Therefore, assets transferred five years prior to the filing of a Medicaid applica- tion are off the table. Any gifts or other transfers Medicaid deems improper that occur during the five-year period prior to the filing of a Medicaid application generate a penalty period that does not begin to run until the applicant is otherwise eligible and has filed a Medicaid application. The penalty period is determined by dividing the value of the assets transferred by what the state of Ohio considers to be the average cost of nursing home care in the state, which is currently $6,327 per month. This is only a brief overview of the Medicaid rules. If you choose to engage in long-term care planning, it is important to consult an attorney who is well-versed in the area of Medicaid. Next issue: Medicaid planning options NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice. Stephanie Haight is an attorney with the law firm of Krugliak, Wilkins, Griffiths & Dougherty Co., LPA, in Canton, Ohio. She is a member of both the Estate Planning & Probate Law and Elder Law Sections. ■ (Part I of II) By Stephanie Haight, Esq. Maneuvering Through the Maze of Medicaid: What You Should Know Before Planning +++++++++++++++++++ + +++ + +++ +++++++++++++++++++ LEGAL EASE ❯ 2 8 | Cleveland/Akron/Canton MD NEWS ■ M D N E W S . CO M ■ J U LY/AU G U S T 2 0 1 5