THE FORESIGHT SOLUTION
a simple Medicaid eligibility solution
About
In order to qualify for long-term care Medicaid or PACE benefits, you must meet the “asset test.” This means the person needing care cannot have more than $2,000 in countable assets. And the healthy spouse, known as the “Community Spouse,” cannot have more than $154,140. The good news: income-producing property is excluded and is not considered a countable asset.
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​If you own income producing-property that generates a fair market value rent payment to the owner, the property doesn’t count against your asset test limit. Only the income is countable towards your income limit or income-based share of cost, if any.
About
Let’s say you’re single and you have $125,000 checking account. You won’t qualify for Medicaid benefits. But with The Foresight Solution™ - if you spend $123,000 to purchase an income-producing property, you qualify once the sale is complete. Quick. Simple. Efficient.
When the Medicaid recipient passes away, the income-producing property transfers upon death to the named remaindermen (a fancy term that describes who takes automatic title upon your death when using an enhanced life estate deed). So no only do you avoid the Medicaid spenddown, you also avoid Medicaid estate recovery – the state’s attempt to claw back protected assets after your death.
About
Foresight Income Solutions matches your excess resources with fractional shares of existing world-class rental properties in our portfolio. Instead of buying the whole property, you simply buy a piece of the property – known as a fractional share. You get full fee simple title to your share of the income-producing property and are paid pro-rated rental income on a monthly basis.
Even better, you let someone else be the landlord and deal with the tenants and building maintenance. No hassles screening tenants or collecting rents. It’s all fully handled for you. All you do is sit back and collect a stable monthly rent at market value, knowing that your new rental shares are fully protected from the Medicaid spenddown and estate recovery.
The property management agreement provides each owner with a guaranteed monthly rental plan with a five-year, extendable lease term. The rental lease is set up as a triple net lease, which means you’re not responsible for paying for the taxes, maintenance, insurance, or any other property expenses for the rental. The Medicaid applicant or their community spouses receives a monthly income that is a little over three percent (3.1%) of the purchase amount annually, as rental income paid out monthly, which is certified by an independent real estate broker as satisfying Medicaid’s fair market value income rule. This amount is paid out is a guaranteed amount, regardless of the property’s occupancy rates, to provide the Medicaid applicant or their spouse with stability.
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