Frequently Asked Questions:

1. How do I qualify for Medicaid to pay for in-home care, assisted living or nursing home expenses?
   An applicant must meet regulations established by the Idaho Department of Health and Welfare regarding their need for health care and lack of finances (i.e. income, assets and absence of gifts)
   
   
2. Can I gift away assets to qualify for Medicaid?
   Generally, Medicaid penalizes gifting of income and/ or assets for the purpose of qualifying for Medicaid. However there are several exceptions to this rule.
    
3. How do I become a person’s guardian or conservator?
   Guardianships and Conservatorships are a court cases in which a judge grants authority over an incapacitated person’s care (Guardianship) or finances (Conservatorships).  Idaho law prescribes a series of steps before a judge will grant an order.
   
   
4. How do I pay for Long Term Care (i.e. in-home services, assisted living or nursing homes)?
   There are five possible options to pay for long term care:
   • payment from your assets (e.g. checking account, savings, CDs, etc.)
   • insurance (e.g.  Medicare, Supplement policies, Long Term Care policies)
   •  Veterans Association (i.e. Aid and Attendance Program)
   • County Financial Assistance, and
   • Medicaid
     
     
5. Should I really have a Will or estate planning documents?
   Wills and Trusts are not mandatory, but in order to assure that a person of your choosing is charge of your estate (Personal Representative or Trustee) and to assure that your property is distributed to the people or organizations that you wish to receive it, you will want to execute a Will or a Trust.  Powers of Attorney for Health and Business serve the purpose of nominating someone to make healthcare decisions or financial decisions for you if you are unable to communicate your wishes.  If you don’t have a Power of Attorney, the Idaho Code designates the person who would make decisions in your stead. 
   
   
6. What is Probate?
   Probate is a court case in which
   • a judge puts someone in charge of an estate (called a Personal Representative),
   • creditors’ bills are evaluated and paid (unless there are insufficient assets),
   • the remaining assets are distributed according to the will of the decedent or laws of Idaho.

Probate cases are overseen by a judge and open to the public.  If controversies can’t be resolved among the parties, the judge will resolve the dispute.

7. When should I have a Trust?
   Trusts are commonly used for the following purposes.
   • Avoid inheritance tax. Many years ago, if an individual passed away with more than $650,000, there was a federal and Idaho state tax on the assets. Today the limit is $3.5 million.  Congress changes the tax limit frequently. Trusts can be used to minimize or avoid federal and Idaho state inheritance tax.
   • Avoid gift tax.  If an individual gives more than $1 million during his/her lifetime, there will be a federal and Idaho state tax on the assets.  Trusts can be used to minimize or avoid the federal and Idaho state gift tax.
   • Assure the controlled distribution of property over a long period of time.  For example, instead of distributing money outright, a parent can use a trust to distribute funds to a child when s/he reaches certain ages (e.g. 18, 25, 50) for certain purposes (e.g. college/vocational training, purchase of a home).
   • Supplement public benefits of individuals. Property can be transferred to certain types of trusts to enable an individual to qualify for public benefits or continue current benefits.  There are several kinds of these trusts: Miller Trust,  Special Needs Trust (which can be “third party”, “d4A” or “d4C”).
     
     
     

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