Not everyone can qualify for Medicaid right away. New Jersey has strict income and asset limitations on the program. Only those with real financial need can typically count on Medicaid benefits. Others may have to wait months for benefits if they incur a penalty when they apply.
Older adults who need skilled nursing care at home or who need to move into a residential care facility may find that they require Medicaid benefits because Medicare is no longer sufficient for their needs. They usually need to get rid of major assets or pay out of pocket before they can qualify.
Still, New Jersey allows people to qualify for Medicaid regardless of their homeownership status. Do Medicaid benefits have any impact on your home?
If you do not plan ahead, your home could go to repay Medicaid
The strict assets and income limitations for New Jersey Medicaid help prevent people from abusing the system when they could pay for their own care. However, New Jersey still has rules requiring that the Medicaid recovery program attempt to recoup any amount paid on behalf of a deceased beneficiary.
The New Jersey Medicaid recovery program can make a claim against someone’s estate, including any assets they leave behind when they die. The program can make a claim against someone’s house, even though the home did not prevent them from qualifying for benefits when they first applied. The state could take everything someone has in their name after their debt to recover those Medicaid benefits.
If you plan ahead to qualify for Medicaid, you can potentially protect your home and other assets from estate recovery attempts. Learning more about Medicaid planning can help you protect yourself and the inheritance you intend to leave for your loved ones.
