Long Term Care Certification Practice Test

What asset will a community spouse NOT be allowed to retain after their partner is institutionalized for nursing care?

1. Ownership of the family home

2. Interest income on their own accounts

3. A trust account in the name of the institutionalized spouse

4. Some personal assets up to a specified limit

The correct answer is: A trust account in the name of the institutionalized spouse

A community spouse, who remains living in the community while their partner is receiving nursing home care, has specific allowances regarding the assets they can retain. Among these, a trust account set up in the name of the institutionalized spouse typically cannot be retained by the community spouse, as it is considered a resource belonging to the institutionalized individual. The purpose of these asset retention rules is to ensure that the community spouse has adequate resources for living expenses while not allowing the transfer or retention of assets that would otherwise deplete the institutionalized spouse's resources intended for their care. On the other hand, community spouses are usually allowed to retain ownership of the family home, receive interest income from their own financial accounts, and keep some personal assets within limits set by Medicaid regulations. These allowances help support the community spouse’s financial stability during the period of institutionalization.