Page 20 THE EVERETT ADVOCATE – FRIDAY, JANUARY 28, 2022 “YOUR FINANCIAL FOCUS” JOSEPH D. CATALDO MASSHEALTH ISSUES FOR HOME AND VACATION HOME fers to an irrevocable trust and five years have gone by, the home would be protected and would not be part of the probate estate upon his or her death. In the case of a single pers long as one spouse is still living in the home, if the other spouse enters a nursing home, the home will be considered a non-countable asset. Therefore, MassHealth’s estate recovery will not place a lien on the home in order to recoup MassHealth benefits paid on behalf of the institutionalized spouse. Once MassHealth benefits are approved for the institutionalized spouse, it is important to then transfer the home to the spouse at home. If the institutionalized spouse is not mentally competent, an attorney in fact acting under the authority of a durable power of attorney can execute the deed on behalf of the institutionalized spouse. Another reason why durable powers of attorney are so important. Once the home is transA ferred to the spouse living at home, he or she then has the option of transferring the home to a caretaker child, an irrevocable trust or even a sibling that has an equity interest in the home. The reason for this is to avoid the possibility of the spouse at home actually dying before the institutionalized spouse and having the home vest entirely in the institutionalized spouse. Upon his or her death, MassHealth estate recovery will then be able to recover MassHealth benefits paid once it is notified of the death of the institutionalized spouse as part of the probate proceedings. If the spouse at home transson, so long as the box is checked off on the MassHealth application stating that he or she intends to return home, MassHealth will not place a lien on the home. However, upon that person’s death, MassHealth will be able to recover against the probate estate. MassHealth will also place a lien on the home once it determines there is no reasonable expectation of that person returning home. MassHealth will, however, only be able to recover actual benefits paid for the institutionalized spouse, which will be at the lower monthly Medicaid rates, as opposed to the much higher private pay rates. This might serve to protect much of the equity in the home, depending on how long he or she resides in the nursing home. Vacation homes would be considered a countable asset. A vacation home would have to be sold in order to qualify for MassHealth. If dealing with a married couple, the sales proceeds could be used to purchase a Medicaid annuity for the spouse at home. If the vacation home were to be rented out at a profit, then the vacation home would then be a non-countable asset whether dealing with a single person or married couple. Transferring vacation homes to an irrevocable trust as part of advanced planning may also be a good option to protect the vacation home. LIKE US ON FACEBOOK ADVOCATE NEWSPAPER FACEBOOK.COM/ ADVOCATE.NEWS.MA
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