Top 10 Myths about Medicaid and Nursing Homes in Minnesota

1. The State will put a lien on my house.

- No, not if you are married and your spouse is living in the house.

2. I must plan five years in advance, otherwise it is too late.

- No, there are asset protection strategies that can be used even at the last

minute.

3. I don’t need an elder law attorney.

- No, most people benefit greatly from the advice of an experienced elder law

attorney. Do not trust the internet, your neighbor, your financial planner or an

employee at the care facility to properly advise you. The rules are

complicated!

4. The State (or nursing home) will take all my assets.

- No, nobody ‘takes’ your assets. But Medicaid (called Medical Assistance in

Minnesota) will not pay for your care if you have too much in assets. In that

case, you must spend down or use certain strategies to protect your assets.

5. Medicare will pay for the nursing home.

- No, Medicare does not pay for long-term care costs. Medicare pays for up to

20 days and part of the cost for up to 100 days under limited circumstances.

Medicare does not pay for a long-term stay in a nursing home.

6. A revocable trust will protect my assets from care costs.

- No, a revocable trust helps avoid probate when you die but does not shield

your assets from care costs.

7. Adding an adult child on my bank accounts will protect my money.

- No. Unless your child can prove she contributed her own money to your

account, Medicaid assumes all the money in a joint account is yours.

8. My spouse’s retirement account is protected from my nursing home

expenses.

- No, Medicaid looks at all assets and accounts owned by either spouse or both

spouses.

9. A prenuptial agreement protects my assets from my spouse’s care costs.

- No, in Minnesota a prenuptial agreement is not honored by Medicaid. All

assets or accounts owned by either spouse are counted even if a prenuptial

agreement exists.

10. I must divorce my spouse who needs care to protect assets for myself.

- No. While some couples consider divorce in the long-term care situation,

there are other strategies to protect assets for the spouse at home.

Jill A. Adkins is an elder law and estate planning attorney, practicing with the

Henningson & Snoxell, Ltd, law firm in Maple Grove, MN.