Medicaid Practice Test

by Ira M. Leff, Esq.

May 12, 2008

Patty Davis is an 84 year old widow. She suffers from Parkinson's disease and was recently admitted to a Georgia nursing home. Her gross income is $1,450 from Social Security and $575 from a pension. She pays the normal amount for Medicare Part B, $155 for AARP Plan F, and $27.50 for Humana Part D. In 2001, she loaned her son $150,000. The note calls for principal payments of $10 per month for 15,000 months. Patty owns a home worth $450,000 and a vacation home at Big Canoe worth $275,000. She would like to qualify for Medicaid as soon as possible so that she can protect her life savings and pass it on to her children, one of whom is disabled.

  1. Does Patty need a Qualified Income Trust in order to receive Medicaid?
    1. If so, how much does she need to contribute to the trust each month?
    2. How can she use the money in the trust?

  2. Is the promissory note a resource?
    1. If so, what is its value?
    2. What can Patty do to minimize its value?

  3. Can Patty keep two homes?
    1. Should she rent the vacation property?
    2. What do you recommend?

  4. What can Patty do for her children?
    1. Is there anything special that she can do for her disabled child?
    2. Does it matter how old that child is?

  5. Once Patty qualifies for Medicaid, what will she owe the nursing home?

Please click on any of the categories below to read more related Elder Law Minutes.

If you would like to join my mailing list, please click here.

Elder Law Minute is written and distributed by Ira M. Leff and Associates. The information contained therein may not be altered, appropriated, duplicated or transmitted without the express permission of Ira M. Leff. Information contained in this website is general in nature and not intended as legal advice. Visiting this website does not create an attorney-client relationship. Legal advice should be obtained before any action is taken based upon information in this website. Sending an inquiry to our firm does not constitute engagement of our services nor does it establish an attorney-client relationship.

Copyright © 2008–2013 Ira M. Leff, Attorney at Law. All rights reserved.
1722 Pinetree Circle / Atlanta, Georgia 30329 /
Direct dial: 404.633.1801 / Fax: 404.633.1830

Website design by Click Design . Website Maintenance by NFI Atlanta.
If you have any questions or issues regarding this website please contact