Smaller Print Larger Print
800-336-4529 618-985-4529
Under the current Medicaid law, when a middle-class elderly person needs nursing home care, they have the ability to preserve part of the equity in their home through appropriate planning.

Life Care Planning, Estate Protection, Disability,
VA & Medicaid Assistance Lawyers

School Districts Will Be Hurt

School Districts Will Be Hurt

 

Senate Bill 1932, which targets middle-class elderly, may have a devastating effect upon the budgets of local school districts and local governments.

 

Under the current Medicaid law, when a middle-class elderly person needs nursing home care, they have the ability to preserve part of the equity in their home through appropriate planning.  The planning is complex, not unlike the planning a person would do to reduce their estate taxes (the so-called "death tax"); but such planning - when done right - can help a family preserve a portion of the equity in the home.  Depending upon the circumstances, all of the equity can be preserved.

 

The changes to the Medicaid law contained in Senate Bill 1932 are intended to prevent elders from doing this type of planning to save the home.  Once the bill is approved, the elder and her family will have little incentive to save the equity in the home.  The elder will be out of funds and will be unable to maintain the home. The family will have no incentive to deal with the home because a Medicaid lien will have been placed on the home, which ties up the equity in the home.  The home will go to waste.  No taxes will be paid.

 

As a consequence, once Senate Bill 1932 is approved, school districts and local governments may experience a significant reduction in their tax base.

 

In prior issues of the Southern Business Journal we have discussed some of the harmful effects that Senate Bill 1932 will have on the middle class and the health care delivery system in southern Illinois.  In future editions, we will dissect the legislation and its impact on southern Illinois.

 

            Richard Habiger is an elder law attorney.  You may contact him at 618-549-4529 or Richard@HabigerElderLaw.com.