Estate planning and elder law attorneys in Ohio have been on pins and needles the past year to hear the decision about the fate of legislation pertaining to titling a home in the name of a Revocable Living Trust (RLT). The legislation was proposed by the Ohio State Bar Association to fix the problem of counting a house titled in the name of a RLT as a resource that would be included for determining if a person would qualify for Medicaid. This problem was created several years ago by an Ohio appellate court decision.
Governor Kasich supports his veto of the Medicaid "fix" by saying, "This item would allow an individual to hold certain resources in a revocable trust, without penalty, that might otherwise be used to pay for his or her long-term care costs before entering the Medicaid program. Additionally, it allows an individual to receive an income stream from the home without making a corresponding contribution toward his or her long-term care costs. This ability to shelter income is currently the subject of litigation pending before the Ohio Supreme Court. Vetoing this item is necessary to maintain the fiscal and programmatic integrity and stability the Administration has established for the Ohio Medicaid program. Therefore, this veto is in the public interest."
The main point to take away from this veto is that if you foresee that you or your family member will have to qualify for Medicaid (not Medicare) to pay for long-term care, and your home is titled in the name of a RLT, you should call an estate planning or elder law attorney ASAP.