Elder Law Answers
If a Healthy Spouse Marries a Nursing Home Resident, Is the Spouse Entitled to the Resident's Social Security?
What happens if a Medicaid recipient in a nursing home marries a healthy bride? Is the new spouse entitled to any of the n...
Read moreHow Can We Keep the Sale of Her House From Knocking a Nursing Home Resident Off Medicaid?
- December 29th, 2015
Q
A widowed, 82-year-old woman is currently in a nursing home on Medicaid and is up for renewal of her Medicaid eligibility. The woman’s house recently sold. We need to spend down the proceeds to Medicaid’s $2,000 asset threshold. She owned the home with her children, who all received their checks from the sale of the home. The capital gains taxes due from the sale of the house will not be paid before the renewal of Medicaid. What options do we have to keep an amount to cover the taxes and not be penalized? What options do we have to spend down? Is gifting an option? This is in Wisconsin.
A
We cannot comment on how Wisconsin will apply the law, but in most instances your mother cannot gift any of her share of the proceeds of the house sale. (Exceptions would include gifts to any of her children who may be disabled or into trust for the sole benefit of anyone who is disabled and under age 65.) On the other hand, your mother can spend her funds for her own benefit. This can include prepaying for her funeral if she has not already done so and prepaying her taxes. She can pay the IRS and the Wisconsin tax authorities an estimate of what she will owe for the sale of the house. But she can only pay for her share, not for any taxes that may be due on capital gain attributable to her children. An accountant should be able to advise on this.
To find a qualified elder law attorney in Wisconsin, click here.
Local Elder Law Attorneys in Ashburn, VA
Meet John Laster
(703) *** ****
Learn more
John Laster
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
(703) *** ****
Tell us about your legal issue and we will put you in touch with John Laster.
Meet Judith Mitnick
(703) *** ****
Learn more
Judith Mitnick
Needham Mitnick & Pollack, PLC
Judith Mtinick is well known for acting as a guardian, conservator, trustee or agent on behalf of clients or by court appointment. This experience gives her a wide perspective and extensive practical knowledge that she uses when advising clients in drafting their planning documents. Her experience, as a court appointed...
(703) *** ****
Tell us about your legal issue and we will put you in touch with Judith Mitnick.
Meet William Fralin
(301) *** ****
Learn more
William Fralin
The Estate Planning & Elder Law Firm PC
Bill founded The Estate Planning & Elder Law Firm, P.C. in 1994. Bill limits his practice to the areas of estate planning and administration, incapacity planning, Medicaid, asset protection planning, and elder law. He is one of (15) fifteen attorneys practicing in Virginia, Maryland and the District of Columbia, ce...
(301) *** ****
Tell us about your legal issue and we will put you in touch with William Fralin.
For more on the rules for spending down assets to qualify for Medicaid, click here and here.
Last Modified: 12/29/2015
