I am concerned that because I have a pension of $1650.00 and SS of $1400.00 I would never qualify for Medicaid should the need arise. My only child has a disability and I want to leave him some security for the future too. I don't know how to set this up. My mother just had to be placed in a SNF and her monthly income couldn't be more than 2180.00. Will I never qualify?
I doubt they can touch yours. With an income that high you should be able to support yourself fairly well. But as quoted above you do need legal advice. you will almost certainly be above the limits for Medicaid. if you personally need NH your income will be taken to pay towards your NH costs and you will be only allowed a small allowance. I understand they are clamping down on trusts to make it impossible to keep your money away from Medicaid unless you can do something more than 5 years before you need Medicare.
Your question about income and Medicaid eligibility requires more information. Nursing home residents can keep only a small amount of their income if Medicaid is paying the bill.
Establishing a Third Party Special Needs Trust for your child now provides a way for you to fund an inheritance for him that will not disrupt his income eligibility in the future.
An elder law attorney can also explain how establishing a (d)(4)(A) Trust for your child now will give him a place to deposit assets of his own, if that becomes necessary in the future.
What you are likely to hear are things related to a special needs trust for your son. I have a cousin who got polio in 1950's & his parents did a SNT. As they aged, I and his brother became trustees and how succession was to be done was in the trust (luckily), although my cousin totally self-directs his SNT as his limitations are physical not cognitive. It's about to do it planned defunding. If done correctly SNT are great as it can be freestanding asset & not affect their ability to get Medicaid should the need arise. There have been some changes fairly recently as to how much $ can go each year into a childhood based disability SNT and get it tax free for new state-pooled trusts…..my point in mentioned this is that trusts, well its complex & not a DIY, so you need to find an atty who can deal with issues for your son as well as you. It will be $ well spent. imho It's probably going to be an estate law atty rather than elder law one.
SS maximum is $ 2,640 a mo. For many many baby boomers, they are going to totally qualify for maximum. From just their SS alone, they are over the Medicaid limit not even counting pension, investments, other assets. Aging in the US is not going to be pretty. Really planning is even more important for boomers than for our parents.
I echo others suggestion to see a qualified elder attorney. The fact that your adult child is disabled suggests to me that he is possibly already on Medicaid. I've heard others in a similar situation say that should he inherit from you or anyone else, it could disrupt his ability to continue to receive funds from Medicare.
I found my Elder Law Attorney that way, and she has been outstanding. Elder Law Attorneys are able to work through the maze of Medicaid, if needed. Know how to set up Trusts... and even do Wills and Power of Attorneys.
At the end...Medicaid get the distribution from that trust.
That is how it is done.
Carol
It would be very worth the cost to consult an attorney specializing in Elder Law. The lawyer can help you determine the best way to provide for your child.
Also ask about a special needs Trust for yourself, one that is Medicaid compliant.