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Law & Legal
  1. How to Qualify for a Medicaid Waiver
  2. Six Reasons Someone May Be Placed Under a Guardianship
  3. What Can Be Included in a Will?
  4. How Much Should You Put as a Down Payment on a House?
  5. 3 Assets That Can Fund a Trust
  6. Why You Should Have a Life Insurance Policy
  7. Is Real Estate a Good Financial Investment?
  8. S-Corp vs. C-Corp
  9. 5 Reasons Someone Might Disinherit a Child
  10. Benefits of a Testamentary Trust
  11. Steps on How to Sign Up for Life Insurance
  12. What is the Estate Administration Process?
  13. What Types of Government Benefits are Available for the Elderly?
  14. What is the Job of an Executor?
  15. What is a Simple Estate Plan?
  16. Why You Should Have a Will
  17. 3 Things You Need to Prepare Your Taxes
  18. Tips for Planning an Estate
  19. What is Electronic Notarization?
  20. Are There Requirements to Qualify for Medicaid Home Care?
  21. 3 Benefits of Tax Planning
  22. 3 Things to Know About Retirement Planning
  23. How Does Mental Illness Impact Your Estate Planning Process?
  24. What is a Lawsuit for Wrongful Death?
  25. What is The Tax Code?
  26. Guide to Become a Tax Advisor
  27. Does My Parents' Divorcing Impact My Inheritance?
  28. Guide to Understand When You Should and Shouldn't Buy a Home
  29. 3 Things a CPA Can Help With
  30. Tips to Maximize Your Tax Refund
  31. 3 Reasons You Should Have a Tax Accountant on Retainer
  32. Do Self-Employed Individuals Get Taxed Differently?
  33. What are Unclaimed Funds?
  34. 4 Things to Know About Surrogate's Court
  35. 3 Reasons Having Advance Directives is Important
  36. What are Estate Taxes?
  37. What is The Estate-Tax Exemption?
  38. Who Has to File Taxes?
  39. 3 Reasons You Should Have a Trust Protector
  40. Understanding Spousal Impoverishment
  41. Who Files Taxes For Businesses?
  42. Should I File My Taxes Using Turbo Tax?
  43. 3 Ways to Protect Against Financial Exploitation
  44. Who Qualifies for a Special Needs Trust?
  45. Guide on How to Write Off Business Expenses When Doing Your Taxes
  46. 3 Things Every Small Business Should Know
  47. Why Updating Your Will is Important
  48. What is the Probate Journey?
  49. What Happens if I Don't File My Taxes?
  50. Tax Accountant vs CPA
Understanding Spousal Impoverishment {{ currentPage ? currentPage.title : "" }}

In the world of estate planning, you’ll hear all kinds of technical and legal terms thrown around, but spousal impoverishment is one that often confuses people. What is spousal impoverishment? Does spousal impoverishment change how estate planning is handled? Explore 'what is spousal impoverishment' on this website for in-depth insights!

To help you get a better understanding of your rights as a spouse in estate planning, below is a helpful guide to explain the basics of spousal impoverishment:

How Long-Term Care Affects Spouses

Before answering the question of what is spousal impoverishment, it’s first important to understand the hardships that can be placed upon married couples when one enters long-term care. In addition to the need to pay for medical expenses, admission to a long-term care facility often means that the spouse who is still living at home has diminished income and may become impoverished.

To combat this, the Spousal Impoverishment Law was passed in 1988. This law protects the assets of the spouse who is at home when the other spouse enters long-term care. The spouse who is entering long-term care must also apply for Medicaid for the spouse at home to qualify for protection.

How Spousal Impoverishment Affects Estate Planning

Because spousal impoverishment can change the financial dynamics of a home, an estate planning attorney will need to take into consideration all income and assets when helping someone protected by the Spousal Impoverishment Law. Estate planning in this sense may mean transferring assets legally or filing for additional protections for any assets not covered by the law.

According to the Centers for Medicare and Medicaid Services (CMS), the spouse living at home, also known as the community spouse, can set aside a certain amount of assets to avoid becoming impoverished when the other spouse enters long-term care. Additionally, some of the admitted spouse’s income or earnings may also be protected and set aside for the community spouse.

Because these scenarios can be complex, it’s best to work with an estate planning attorney for guidance. Your attorney will be able to tell you exactly what you may be entitled to in the unfortunate event that you or your spouse end up in a difficult situation.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at probate administration blog.

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