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Dutchess OfficeSpousal Refusal as an Asset Protection Option
New York is one of the only three states that allow for the option of spousal refusal. Spousal refusal is an asset protection tool used wherein a spouse living the the community refuses turn over his or her assets or income to an ailing or incapacitated spouse for the purpose of seeking nursing home Medicaid benefits. This tool may make some people feel uncomfortable and may view its use as “abandoning” a spouse when s/he needs help the most.
However, employing spousal refusal is not tantamount to abandoning a spouse. Spousal refusal is simply a way of preventing assets from being drained over the course of an expensive nursing home stay. With the proper planning, spousal refusal can protect assets while at the same time permitting the spouse who needs long term care to qualify for Medicaid benefits. This will decrease the financial burden on the non-institutionalized spouse, allowing him/her to provide the emotional care and comfort to the ailing spouse.
To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.
Tags: new york elder law, new york estate planning, new york special needs, new york special needs planning, ny elder
5 Responses to “Spousal Refusal as an Asset Protection Option”
January 21st, 2010 at 2:31 am
My Father is in stage three Alzheimer’s and my mother and I are primary caretakers. They both own a home in NYC. My mother is contemplating applying for medicaid and was told that spousal refusal was the way to go. We are hesitant. What are the ramifications for my mother should use the spousal refusal option?
January 21st, 2010 at 4:12 pm
Spousal refusal is extremely complicated and must be done properly in order for it to benefit your family. It is possible that the Medicaid agency could sue the refusing spouse to seek recovery of Medicaid benefits paid. In order to make sure your family is protected you should consult with a certified elder law attorney. Good luck!
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