Texas Miller Trust | Houston Medicaid Attorney » income

When Does Income Become a Resource?

Rich Shea — Mon, 12 Apr 2010 11:46:22 +0000

What happens to income after you receive it? As we have covered in other articles Texas Medicaid has very specific rules for the treatment of income and the treatment of assets. Therefore, it is critical your Houston Medicaid Attorney understands when property is labeled as income and when it is labeled as a resource.

The General Rule of Income for Texas Medicaid

Income is anything a person receives in cash or in kind that can be used to meet the person’s needs for food and shelter. It is the receipt of any property or service a person can apply, either directly or by sale or conversion, to meet basic needs for food and shelter. Income is normally counted on a monthly basis.

Is Income Always Treated as Income?

No. The legal definition of income for Texas Medicaid eligibility only applies for a limited time. For example, if you receive pension checks that you do not spend but rather deposit into a separate bank account where nothing else goes; is that account treated as income because that is all that was deposited into it? Unfortunately no, property loses its label as income through the passage of time, not through how it is used.

For Texas Medicaid the receipt of a payment – in the form of cash, property, or service – is income in the month of receipt and a resource as of 12:01 a.m. on the first day of the month after receipt. If you receive a payment on April 26th the payment may be treated as income only until 12:01 a.m. on May 1st.

Sort Out Income and Resources

Speak with a Woodlands Medicaid Attorney today if you need help sorting out what property is treated as income and what property is treated as a resource for Texas Medicaid eligibility. The wrong identification of property can cost your family thousands of dollars in unpaid nursing home bills while the mistakes are remedied.

TexasTitle19.com is your connection to an experienced Houston Medicaid Attorney who can help you find the right nursing home, get the best care, and pay for it all without going broke. We are currently focused on Harris and Montgomery Counties, including the areas of Houston, Conroe, The Woodlands, Spring, Tomball, Humble, and Katy. We also provide consulting services throughout all of Texas.

Texas Medicaid Eligibility for 2010

Rich Shea — Wed, 06 Jan 2010 13:00:26 +0000

Certain numbers used to determine eligibility for Texas Medicaid benefits are subject to change every January 1st. This year there were not many changes. Unfortunately the minimum and maximum Community Spousal Protected Resource Amounts remained the same. The current figures are listed below.

Income Limit for an Individual: $2,022/month

Income Limit for a Couple: $4,044/month

Resource Limit for an Individual: $2,000

Resource Limit for a Couple: $3,000

Home equity is limited to $500,000

Minimum Community Spousal Protected Amount: $21,912

Maximum Community Spousal Protected Resource Amount: $109,560

How Does this Impact Your Family?

If your loved one’s income or assets exceed the values listed above do not give up. A Houston Medicaid Attorney can help you establish Medicaid eligibility through proven techniques while protecting everything your family is entitled to protect. Remember, only you can protect your rights and property. The nursing home and the DADS are not responsible for helping you with asset protection. Call (832) 426-3913 to get started today.

How Long Will You Have To Pay The Nursing Home Bill?

Rich Shea — Sun, 22 Nov 2009 12:44:53 +0000

Sometimes a loved one enters a nursing home as the result of the gradual progression of an illness such as Alzheimer’s. Sometimes a loved one needs nursing home care unexpectedly and everyone is caught by surprise and quickly finds themselves in a overwhelming situation. In either case, one of the vital questions you need to ask and prepare for is how long will your family have to pay the nursing home bill before your loved begins receiving Texas Medicaid benefits?

We’ve discussed specific eligibility issues such as assets and income in other articles. Today we are only looking at the timelines involved when a person meets the eligibility criteria for Texas Medicaid.

You may find yourself in the following situation:

Your loved one enters a nursing home on a random day of the month, let’s say October 10th.
Medicare covers the first 20 days but it becomes clear an extended nursing home stay is needed.
You consult with a Texas Medicaid Attorney on November 1st who prepares and files your Medicaid application on November 15th.
The application is approved December 10th.
When do Medicaid benefits begin?

Your loved one can be covered as of October 1st if all of the other criteria were satisfied as of October 1st, namely asset and resource eligibility.

If your loved one did not meet all of the eligibility criteria as of October 1st (which is common in cases where the nursing home admission is unexpected) your family may have to pay the nursing home bill until Medicaid eligibility is created which could be November 1st or December 1st in the above example. Exactly which date it is depends on how quickly you create Medicaid eligibility with the advice of a Texas Medicaid Attorney.

The important thing to remember about asset and income eligibility for Texas Medicaid is that it is only examined at the first moment of the month. By rule, if your loved one has too many assets or too much income as of that first moment of the month they are ineligible for Texas Medicaid nursing home benefits for the entire month and you will have to deal with an uncovered nursing home bill.

Create Medicaid Eligibility As Soon As Possible

In the above example the family began to work with a Texas Medicaid Attorney on November 1st. By that time it was already too late for the attorney to fix any eligibility issues to establish a benefits date of November 1st. The next earliest potential benefits date is December 1st, leaving the family to pick up the bill until then. If the family in the above example began to work with an attorney while there was still enough time in October, they may have been able to obtain a benefits date of November 1st.

Take Back Control

Rich Shea — Wed, 24 Jun 2009 14:00:28 +0000

Can you answer these questions?

My loved one’s nursing home is ________________________.
My loved one’s nursing home costs $____________ every month.
My loved one will be broke on ___________.
My loved one will be able to keep $_________ in income and qualify for Texas Title 19 Medicaid.
My loved one will be able to keep $_________ in assets and qualify for Texas Title 19 Medicaid.
My loved one will qualify for Texas Medicaid nursing home benefits as of ________.
There is a gap of $_________ in nursing home bills that Texas Medicaid will not cover.
The Department of Aging and Disability Services will not impose a penalty period against my loved one based on the previous 5 years of records.
My loved one’s spouse will be able to keep $_________ in income and assets to maintain his or her standard of living.
My family has taken the proper steps to protect as many assets as possible.

Families facing a Texas nursing home situation are always in a difficult position. Uncertainty suddenly surrounds a family that was previously in control of their health and financial destiny. The first step to restoring stability and reducing anxiety is understanding how a nursing home stay will impact a spouse at home as well as the family’s life savings.

A Texas Medicaid Protection Plan can answer these questions for you and your family as well as give you a plan for the road ahead. Speak with a Texas Medicaid Attorney today to begin yours today. Do not stay at the mercy of the nursing home and government agencies. Get answers to your questions today and take back control of your situation.

Miller Trust Requirements – Part 2

Rich Shea — Fri, 29 May 2009 20:14:23 +0000

Today we will review additional requirements to maintain a valid Miller Trust under Texas Medicaid law. These requirements are in additional to the items we previously discussed.

A valid Miller Trust must be irrevocable. If your trust document contains any provisions concerning revocation, modification, or termination by an individual or a court you risk invalidating your Miller Trust.

A valid Miller Trust must provide that Texas will receive all amounts remaining in the Miller Trust upon the death of the Medicaid recipient (limited to the amount of assistance paid on their behalf).

A valid Miller Trust must impose the following duties on the Trustee:

The Trustee must pay to the beneficiary the monthly personal needs allowance provided in the Medicaid regulations;
The Trustee must pay to the spouse of the beneficiary the amount required to reach the spouse’s minimum monthly maintenance needs allowance;
The Trustee must pay medical expenses of the beneficiary that are not subject to reimbursement by a third party;
The Trustee must pay from the remaining funds the cost of medical assistance provided to the beneficiary.

These provisions are required to create and maintain the validity of your Miller Trust. If any required provision is not included or properly drafted you may not have the protection you seek. Speak with a Houston Medicaid Lawyer if you need to create a Miller Trust to create eligibility for Texas Medicaid nursing home benefits.

TexasTitle19.com is your resource to find an experienced Houston Medicaid Attorney who can help you find the right nursing home, get the best care, and pay for it all without going broke. We are currently focused on Harris and Montgomery Counties, including the areas of Houston, Conroe, The Woodlands, Spring, Tomball, Humble, and Katy.

Miller Trust Requirements – Part 1

Rich Shea — Wed, 27 May 2009 23:15:16 +0000

Today we will review some of the required elements for a valid Miller Trust under Texas Medicaid law.

A valid Miller Trust must be funded only with pension, Social Security, and other income of the individual applying for Texas Title 19 nursing home benefits. In addition, the entire income source must be deposited into the trust. For example, if only half of an individual’s pension or social security is deposited into the trust account, then the trust will not be considered a valid Miller Trust for Texas Medicaid eligibility.

A valid Miller Trust must not contain any resources or assets of the individual applying for Texas Medicaid benefits. The Miller Trust is only for handling income and depositing resources into it will cause it to lose its unique status. Administrative regulations do allow an individual to open the bank account for the trust with a nominal amount if the bank requires an initial deposit.

The individual’s income does not have to be direct deposited into the trust account in order to maintain the protection of the Miller Trust. However, income must be deposited into the Miller Trust during the same calendar month in which it is received. Any income that is not deposited into the Miller Trust account is considered resources for eligibility purposes and may result in a period of ineligibility.

Call (832) 426-3913 today if you need help creating or administering a Miller Trust.

How The Miller Trust Can Win Your Case

Rich Shea — Mon, 25 May 2009 20:13:11 +0000

In order to qualify for Texas Medicaid nursing home benefits the person must have an income below a certain amount. If an applicant has income above the maximum amount, they will be denied Texas Medicaid nursing home benefits. There is no exception to disregard income if the applicant is “medically needy” as there are in many other states. Many Texas families find themselves with too much income to qualify for Medicaid nursing home benefits but too little to afford a nursing home. A common strategy for creating income eligibility in situations like these is to use a Miller Trust.

The Miller Trust is a tool to manage the income of an applicant for Texas Title 19 nursing home benefits. When used properly, a person with too much income to qualify for benefits will be able to reduce their income within required levels by using a Miller Trust. It is important to remember that in order to qualify for the protections and advantages a Miller Trust provides it must be established and administered correctly. If there is a flaw in the document or the administration then the applicant may be found ineligible for Medicaid nursing home benefits for several months and be responsible for those large bills.

We will be reviewing the Miller Trust in detail in future posts.

The Stimulus Check and Your Medicaid Eligibility

Rich Shea — Fri, 08 May 2009 13:39:10 +0000

In order to continue receiving Texas Medicaid nursing home benefits, the person receiving assistance must maintain income eligibility and resource eligibility every month. If you go over income or over assets for one month, you could lose your Texas Medicaid benefits for the entire month.

Occasionally marketplace events can cause problems with maintaining eligibility. A previous example would be when insurance companies were de-mutualizing and issuing stock to people that held insurance policies. Many families that were not on top of the situation found their loved one being ineligible for Title 19 nursing home benefits because of the stock that nobody asked for. This year, the checks issued as part of the Stimulus Bill posed the same threat.

Fortunately, the government has offered guidance on the treatment of these checks before many of them are received. The stimulus checks are not income and will not affect a loved one’s income eligibility for Texas Medicaid nursing home benefits. In addition, it will not be counted as a resource for 10 months. It will be counted as a resource in February of 2010.

Income Eligibility Limit – Married

Rich Shea — Sun, 15 Mar 2009 02:12:58 +0000

One essential criteria to qualify for Houston Medicaid nursing home benefits is income eligibility. For a Houston Medicaid applicant that is married, the income limit for 2009 is $4,044 each month.

If the applicant and the applicant’s spouse has monthly income less than $4,044 then the applicant has established his income eligibility and can move on to the next step of winning Houston Medicaid nursing home benefits.

If the applicant and the applicant’s spouse has monthly income above that amount then they fail the income test. If you have been denied Houston Medicaid nursing home benefits because your income was too much, a Houston Medicaid Attorney may be able to help you create income eligibility with advanced legal techniques depending on your unique facts.

The income eligibility limit is redetermined each year and is subject to change.

TexasTitle19.com is your resource to find an experienced Texas Medicaid Attorney who can help you find the right nursing home, get the best care, and pay for it all without going broke. We are currently focused on Harris and Montgomery Counties, including the areas of Houston, Conroe, The Woodlands, Spring, Tomball, Humble, and Katy.

Income Eligibility Limit – Single

Rich Shea — Sat, 24 Jan 2009 17:22:01 +0000

One essential criteria to qualify for Texas Medicaid nursing home benefits is income eligibility. For a Texas Medicaid applicant that is single, the income limit for 2009 is $2,022 each month. The income limit for a married applicant will be discussed in a separate article.

If the applicant has monthly income less than $2,022 then they have established their income eligibility and can move on to the next step of winning Texas Medicaid nursing home benefits.

If the applicant has monthly income above that amount then they fail the income test. If you have been denied Texas Medicaid nursing home benefits because your income was too much, a Texas Medicaid Attorney may be able to help you create income eligibility with advanced legal techniques depending on your unique facts.

The income eligibility limit is redetermined each year and is subject to change.