They Don't Want Your House!

It is always fun for me to talk about various legal topics to groups at community legal education events. One thing that always happens--no matter what I am discussing--'"someone will ask what they can do to prevent " the government from taking away my house."

 My response is: “The government doesn’t want your house!” The government wants you to use your resources before you ask for taxpayer resources. The “boogie man” aka "big government" issue that people who ask this question are often concerned about is something called “Estate Recovery.” This is the requirement that  before someone gets welfare or Medicaid/KanCare, they are required to "spend down"  their own financial resources, before they can ask the taxpayers to help.

Paul Shipp is a managing attorney at kansas legal services.

The actual question that individuals want answered is “Can I get KanCare / Medicaid and still keep my house/ farm /wealth--and pass it on to my children?”

The general answer to this question is “maybe." I say “maybe” because there are ways to accomplish this-- but doing so requires long term planning and lots of trust in other people to make it happen. It also requires an assumption that  government rules will not change. Those interested in pursuing this strategy must talk to a lawyer who specializes in this kind of planning before you do anything.

When someone applies for KanCare they are essentially asking the government to pick up their tab for pricey medical expenses they cannot afford. KanCare is welfare. All recipients  of welfare must prove they are financially needy and actually require assistance before the government will open its wallet. I always try to make it clear that 'the government" and "the taxpayer" are synonymous; for some reason it makes it easier for the people asking the question to grasp the concept.

 The current law requires a " five year look back period."  The caveat: any individual involved in this process needs to understand that the government may opt  to change the five year look back to another number--maybe seven, maybe ten years. It is always risky to give away all of your stuff just so that you can get welfare-- I do not recommend it. If you choose to do long term planning  you should consult with a qualified lawyer who knows what they are doing.

Though COVID has created challenges for publishing, we are excited to announce that Keynotes is back! A longer form of this article appeared in the latest edition of Keynotes. This edition is packed with information on Medicare Open Enrollment, SHICK Counseling, and avoiding Scams, plus our many special features. Are you on our mailing list? If you haven’t received Keynotes in the past but would like to, contact us and we will send you a copy!