The last we’ll ‘bend your ear’ on the subject of bank statements. We’ve recently discussed the importance of doing a Bank Statement Review and the heartache you may incur by not doing this before filing a Medicaid Long Term Care application for your parent or loved one. A thorough review can be an involved process, though, so we’re sharing one of our own Internal Process Checklists.

Secrets of Reading a Bank Statement – When a loved one is going to a Nursing Home – Part 3 of 3

Bank Statement Review

Ask for 12 months – including check copies – and review all 12.

3 Main Things to Look For:

1. Income from all sources – All income sources need to be verified.

  • Does the patient need a Miller Trust? (The purpose of this trust is to hold and distribute income so as to allow a Medicaid applicant with more than the allowable amount of monthly income to qualify for Medicaid benefits, if they are otherwise eligible. We will discuss the Miller Trust in more detail in another upcoming blog series.)
  • DHS requires a letter showing a breakdown from Gross to Net income on all retirement and income sources.
  • DHS requires copies of contracts on any Annuity Incomes.
  • IRAs are available resources and require a letter showing the available balances.
  • Look for quarterly and annually deposits (mineral rights, etc.).
  • Any random credits – verify source (sell vehicle, cash out funds, etc.)

 

2. Drafts/Debits/Expenses – Check for anything Insurance and any transfers.

  • DHS will require information on insurance payments.
  • Any checks written to individuals will be questioned, so verify purpose.
  • Determine any health insurance/supplemental policies and amounts paid.
  • DHS will require a letter from provider verifying premiums.

 

3. Balances 1st of the Month – Resources for Medicaid Eligibility

  • What was the balance in the account on the 1st day of the month of institutionalization?
  • Does that include income deposited during that month? (Deduct, if so.)
  • Were there checks written at the end of the previous month that had not cleared?
  • Is there a community spouse?
  • What is the amount protected for the community spouse?
  • Will there be a monthly needs allowance?

 

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The information provided on this blog is intended as general information only for a broad audience. It is not intended as legal advice and should not be acted upon as such. If any reader has questions or concerns about any matter mentioned herein, he/she should contact an Elder Law Attorney or other appropriate professional. If any reader has questions or suggestions about a future topic area that he/she would like to see discussed, please contact the author at doug@arkelderlaw.com.