Protecting Your Assets When Your Spouse Needs Nursing Home Care

When your spouse requires long-term skilled care in a nursing home, the last thing you want to worry about is losing your family’s financial security.

Many couples fear that they will have to spend down their entire life savings before qualifying for Medicaid. Fortunately, that’s not always the case. With proper planning, you can protect many of your assets while still ensuring your spouse receives the care they need.

Understanding the Community Spouse Resource Allowance (CSRA)

The good news for married couples in Pennsylvania is that the spouse who remains at home (often called the "community spouse") is allowed to retain a significant portion of the couple’s assets. This is known as the Community Spouse Resource Allowance (CSRA).

What Can Be Protected From Nursing Home Care Costs?

• Primary Residence: The community spouse can keep the home as long as they continue to live there.

• Vehicle: One car can be kept for transportation purposes.

• Retirement Accounts: The community spouse’s retirement savings, such as 401(k)s and IRAs, are generally protected.

• Income Allowance: The community spouse is allowed to retain a portion of the couple's income, including Social Security benefits.

• Additional Assets: A set amount of other assets can also be kept, which varies by state regulations.

  
  

Medicaid and Asset Spend-Down Rules

Medicaid has strict rules about the amount of assets a married couple can retain while one spouse is receiving nursing home care. However, the community spouse does not need to spend down every dollar.

Strategic planning, like establishing a Medicaid Asset Protection Trust or utilizing spousal annuities, can help secure your assets while maintaining Medicaid eligibility.

How to Prepare

The key to protecting your assets is early and thorough planning. Waiting until your spouse is already in a nursing home can limit your options.

By consulting with an estate planning attorney early on, you can develop a strategy that preserves your assets while meeting Medicaid eligibility requirements.

Why Work with Entrusted Legacy Law?

At Entrusted Legacy Law, we specialize in helping families navigate the complexities of Medicaid planning and asset protection.

We understand that your priority is ensuring your spouse’s well-being while safeguarding your financial future. Our heart-centered approach means we’re here to support you with compassion and expertise.

📞 Don't wait until it's too late. Schedule a free consultation today!

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