Long-Term Care Planning Flashcards

What is the Medicaid look-back period for long-term care eligibility?

Answer: 5 years

Medicaid examines asset transfers made within the 5-year look-back period to identify gifts that could trigger a penalty period.

Which asset is generally exempt from Medicaid's long-term care asset test?

Answer: Primary residence (subject to equity limits)

A primary residence is generally exempt from Medicaid's asset test while the applicant or their spouse lives there, though estate recovery may apply later.

What is the primary purpose of a Medicaid-compliant annuity in long-term care planning?

Answer: To convert countable assets into an income stream for the community spouse

A Medicaid-compliant annuity converts excess countable assets into an income stream for the community spouse, helping the institutionalized spouse qualify for Medicaid.

What is the Community Spouse Resource Allowance (CSRA)?

Answer: The minimum assets the at-home spouse may retain when their partner enters a nursing home

The CSRA is the amount of assets the community (at-home) spouse may retain without affecting the institutionalized spouse's Medicaid eligibility.

Which strategy allows a high-net-worth individual to fund potential long-term care costs without purchasing LTC insurance?

Answer: Self-insuring through a dedicated investment portfolio

Self-insuring involves setting aside a dedicated portfolio earmarked to cover potential LTC costs, which works best for individuals who can absorb large care costs without depleting retirement assets.

What does 'aging in place' mean in a long-term care planning context?

Answer: Remaining in one's own home with care supports and modifications

Aging in place refers to the ability to live in one's own home safely and independently as one ages, typically supported by home modifications and care services.