Legal Question in Elder Law in New Jersey

Re: life insurance & nursing homes

In determining resource eligibility, all the assets owned by the institutionalized

individual (either in whole or in part) are divided into "countable" versus "non-countable" assets. Non-countable assets include the home (in most circumstances), household goods, one automobile, pre-paid burial funds, a small amount of life insurance, and any assets that are considered �inaccessible� for one reason or another. Countable resources include cash, bank accounts, stocks and bonds, and property other than the home.

For a person who is one-half of a married couple, the assets available to pay for nursing facility care are subject to the requirements of the spousal impoverishment rules, which protect community spouses. The share of assets belonging to the community spouse is one-half of the couple�s combined resources, subject to a maximum dollar amount. From a couple�s countable

resources, a Protected Resource Amount (PRA) is subtracted.

In 2004, the PRA was the greatest of:

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The spousal share, up to a maximum of $92,760

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The state spousal resource standard, which a state can set an any amount between a minimum of $18,552 and $92,760

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Any amount transferred to the community spouse as directed by a court order, or

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An amount designated by a state hearing officer to raise the community spouse� protected resouces up to a minimum monthly maintenance needs standard.

Good luck,