|
Edited on Fri Oct-03-08 10:19 PM by Jersey Devil
Let me give you an example. In New Jersey, a primary residence is exempt from Medicaid reimbursement if it is also owned and occupied by a surviving spouse or civil union partner. Everyone is familiar with nursing homes and how they can soak up all of a person's life savings after a short period of time. In NJ a nursing home costs in excess of $7,000 per month so it doesn't take long. When the savings is exhausted the state, via Medicaid, takes over and pays the nursing home bill.
Well, that amount paid by Medicaid must be reimbursed to the state when the person dies. If he/she owns a home a lien is placed on it and it must be satisfied from the sale proceeds. However, if there is a spouse there is no lien and if the spouse sells the house is free and clear.
As a lawyer I have seen some pretty sad situations where same sex domestic partners (an unmarried partners of the opposite sex) were left paying half the value of their homes to Medicaid while others next door in the same situation but who were legal spouses paid nothing.
There are many other situations such as pension survivors, etc. where the same thing is true.
|