Is the community spouse's 401(k) considered an asset when the state determines an applicant's eligibility for Medi...Read more
If your mother applies for Medicaid, the 529 plan could be considered an available asset. This means money in the 529 account must be exhausted before Medicaid will pay nursing home bills. In addition, spending the money in the 529 account for medical bills instead of for college will trigger deferred taxes, plus penalties of 10 percent (or up to 20 percent in some states) that apply if the money is used for something other than education. In order to prevent this, your mother could transfer the plan to you. However, this may trigger a Medicaid penalty period because it could be considered a transfer of assets. To find out the best solution for your family, contact an elder law attorney in your state. Here is a directory of attorneys: http://www.elderlawanswers.com/elder-law-attorneys.
For more information about 529 plans, click here.
Local Elder Law Attorneys in Ashburn, VA
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
Loretta Morris Williams is a certified elder law attorney by the National Elder Law Foundation. Ms. Williams was admitted to the Council of Advanced Practitioners, National Academy of Elder Law Attorneys (NAELA) in 2012. She serves as President of the Virginia Academy of Elder Law Attorneys. Ms. Willia...
Medicaid Rules, etc