"EXEMPT" ASSETS
WHAT YOU
(Plus whatever cash/value
the State allows -- $1,600 for a single, more
for married couples)
Lisa Nachmias
Davis
Davis O'Sullivan
& Priest LLC - Attorneys at Law
davis@sharinglaw.net ~ www.sharinglaw.net
(revised
The
Basics: What Can You Keep?
1. Your HOME (1-family, 2-family, whatever) -- any value -- as
long as any one of the following is living in it:
·
Your
SPOUSE
·
Disabled
or minor child
2. If no spouse or disabled/minor child lives in the house, then equity
in your home up to $750,000 (in CT) IF:
·
You
are living in it (and in CT, you are "living in it" if you can
reasonably be expected to return to it within six months; after that it's
exempt only if listed on the market and you take any reasonable offer for sale)
·
NOTE: you can GIVE to a sibling with an equity
interest who has lived in house 1+ year preceding institutionalization. The rule used to be that the house was exempt
if the sibling lived in it -- no more.
You are encouraged to take out a reverse mortgage to reduce the
equity, if need be. But if you are out
of your home for 12 consecutive months you are not eligible for a reverse
mortgage.
3. Personal effects, furniture, TV, household items, although
at least in theory anything
of value, that you could sell easily or hold for investment, isn't exempt.
4. Car:
·
If
one spouse is at home and one in a nursing home (or receiving home care
"under the waiver" program), one car of any value.
·
If
that doesn't apply, then one car of any value needed to transport someone to
work or to medical appointments.
·
Any
handicapped-equipped vehicle.
5. Irrevocable
Funeral Contract.
·
The
State only allows these to be issued in CT up to $5,400.
·
If
you don't have one of these, a revocable contract of $1,500 (less the value of
any insurance you have) is OK instead.
6. Burial Plot. Includes a revocable "burial trust"
to pay for things like a casket or grave liner. You can have one for each of you and spouse. May be more than $5,400! If the funeral home issues both, they need to
specify which covers which.
7. Term life insurance ("term" insurance = you pay a premium;
it does not pay interest or dividends; there is no cash surrender value, etc.)
8. Other life insurance policies ("whole" life or
"permanent" life insurance, or universal) only if FACE VALUE of
all policies is $1,500 or less. This
is very confusing. If the face value is
$1,500 and the cash value is $3,500, the whole thing is exempt. If the face value is $1,600 and the cash
value is $1,500, none is exempt.
9. The equivalent amount to whatever your
10. Trusts, promissory notes, annuities: IT
DEPENDS – consult an attorney. Your
garden variety "living trust" or annuity is NOT PROTECTED.
11. Reparations -- if you get Holocaust
or internment reparations or payments from similar programs, these may be
exempt.
12. Other Stuff that is "inaccessible" -- which gets very
technical and legal and may involve a fight -- so consult an attorney.
Most everything else is
"counted" when determining whether you meet the financial criteria.
There are further exceptions, however, so you should consult an attorney and
provide your attorney with complete information. EXTRA PROTECTION IS AVAILABLE FOR MARRIED
COUPLES
WHEN ONLY ONE IS RECEIVING LONG-TERM CARE.
Note: This information
is maintained to benefit the elderly in
USE AT YOUR OWN
RISK. Please report changes, errors, and suggestions to Lisa Davis.