Injury settlement award and nursing homes

[realfilm]

What is the name of your state (only U.S. law)? Arizona

I am in NY but the person involved is in Arizona. Here is a summary of the situation. Family member (81 years old) was injured in a car accident (not their fault).Person was awarded a large settlement (6 figures). Recipient wants to open an account with their name on it and mine.(basically a joint account). This person doesnt want me to lose any of the money to a nuring home if they someday end up having to go into one. Is there a special way to word the account so nuring home cant touch the money? (like using the words "and" vs "or"? I would think if its set up as "and" then they cant touch it. But if it says "or" then they can. Any advice?

 

[ecmst12]

No. And no again.

 

[sandyclaus]

What is the name of your state (only U.S. law)? Arizona

I am in NY but the person involved is in Arizona. Here is a summary of the situation. Family member (81 years old) was injured in a car accident (not their fault).Person was awarded a large settlement (6 figures). Recipient wants to open an account with their name on it and mine.(basically a joint account). This person doesnt want me to lose any of the money to a nuring home if they someday end up having to go into one. Is there a special way to word the account so nuring home cant touch the money? (like using the words "and" vs "or"? I would think if its set up as "and" then they cant touch it. But if it says "or" then they can. Any advice?

SO, basically, you're looking for some way to hide those assets in the event that the family member is forced to move into a nursing home, so that the taxpayers will pay for his care?

Why should we taxpayers be obligated to pay when he appears to be perfectly capable of paying for his OWN care?

 

[realfilm]

SO, basically, you're looking for some way to hide those assets in the event that the family member is forced to move into a nursing home, so that the taxpayers will pay for his care?

Why should we taxpayers be obligated to pay when he appears to be perfectly capable of paying for his OWN care?

Hey I just asked a question thats all. I will tell the other person that if they indeed want me to end up with any money then they can send me a check and I will open an account in my own name.

 

[ecmst12]

And if they end up in a nursing home in the next 5 years, that money will still go to pay for thier care, regardless of whose name it's been put into.

 

[sandyclaus]

Hey I just asked a question thats all. I will tell the other person that if they indeed want me to end up with any money then they can send me a check and I will open an account in my own name.

And he'll end up handing the IRS a hefty amount for the gift tax on what he gives you.

Then there's also the 5-year look back period. Medicare reviews any distribution of assets in the 5 years prior to applying for benefits. If they see your relative being able to "gift" such a large amount of money to you, then may likely consider for exactly what it is - an attempt to hide assets in order to qualify them for Medicare.

See - either way you look at it, your family member is going to hand over a bit of that money.

 

[OHRoadwarrior]

They should consult a lawyer about setting up a trust.

 

[realfilm]

And he'll end up handing the IRS a hefty amount for the gift tax on what he gives you.

Then there's also the 5-year look back period. Medicare reviews any distribution of assets in the 5 years prior to applying for benefits. If they see your relative being able to "gift" such a large amount of money to you, then may likely consider for exactly what it is - an attempt to hide assets in order to qualify them for Medicare.

5 years prior to age 81 would be age 76 (yes I can subtract so no wise remarks please) and you apply for medicare benefits at age 65 correct? The accident occured at age 80 and the settlement was paid just last week at age 81. So where does the 5 year prior to applying for benefits thing come into play?

 

[Proserpina]

5 years prior to age 81 would be age 76 (yes I can subtract so no wise remarks please) and you apply for medicare benefits at age 65 correct? The accident occured at age 80 and the settlement was paid just last week at age 81. So where does the 5 year prior to applying for benefits thing come into play?

5 years before the benefits are approved/received.

 

[ecmst12]

And not medicare, medicaid. Big difference.

The 5 years start when he goes into the nursing home and applies for Medicaid to pay for it, claiming he doesn't have the resources. So if he gives the money away now and goes into a nursing home any time in the next 5 years and applies for government assistance to pay for it, he is going to be disqualified.