Will Our Assets and Income Affect Medicaid Benefits?

Q. I am 58 years old. My 61 year old husband has Alzheimer's and will eventually be placed in a nursing home. Our assets include a home that is paid for, valued at approximately $120,000, my IRA's and 401(K)s valued at approximately $600,000. My husband has an IRA of $7,000. My husband gets Social Security disability of $1,526. I get $1,400 a month from a lump sum pension buy out when I retired 4 years ago. I also get $500 per month from my employer until I reach the age of 62. I am concerned about my IRA's and 401(K)s--this will be my only income other than Social Security. I understand that Medicaid allows a monthly income of $2,200 per month.

Any suggestions?

A. Thanks for your email. I can understand why you are concerned
and feel for you in your situation.

Hopefully, I will be able to put your mind at ease...

The way that I understand that Medicaid works is that they view the assets of the institutionalized spouse (your husband) and the community spouse (you) separately. Since your IRA and 401(k) are in your name (even if he is the beneficiary), they should not count as his assets.

Social Security will count his disability income and his IRA. They won't force you to sell the home but after your death may go after his half of the proceeds.

One thing you will want to do is to make sure that your husband is NOT the beneficiary of your IRA, 401(k), life insurance policies or your will. If he is, that money could disqualify him from Medicaid or be sought for recovery if you were to die before him.

Let me know if I can be of further help.

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