Friday, May 18, 2012

Oak Lawn Estate Planning | Medicaid Smart Bill

From the ISBA

Legislation: "SMART" bill

The General Assembly is grappling with a $2.7 billion Medicaid funding gap in the as of yet unpublished "SMART" bill. One of the pieces in it may be a reversal of the Medicaid eligibility rules in the compromise last fall between the Department of Healthcare and Family Services' and the Joint Committee on Administrative Rules. An excellent and comprehensive summary of that compromise may be found in the January 2012 Illinois Bar Journal (Diana Law and William Siebers). Some of these changes may include the following: (1) A home held in a trust, even an individual’s personal revocable living trust, shall no longer be considered homestead property. (2) People over the age of 65 can no longer participate in a federally created OBRA Pooled Trust. (3) A healthy spouse still living at home will receive only the minimum resource allowance instead of the maximum allowance as previously approved by JCAR. Whatever action the General Assembly may take on this issue will occur in the next ten days, and we'll try to keep you informed to the extent we can.