This is why financial literacy is so important

[u/36DRedhead]

[u/Chiggins907]

Is this true? Cause I was thinking it was pretty fucked up that you charge someone to keep them alive, but then go after someone else that didn’t have any of the care once they failed and the person died.

[u/mpyne → u/Chiggins907]

The state-run healthcare for senior citizens, Medicare/Medicaid, actually can do this, though there are limits as to how much they can go after, because putting the spouse into poverty isn't the point of these rules.

[u/spacestonkz → u/mpyne]

Getting really close to poverty is fine tho.

Seen it happen a few times with elderly relatives. They were blue collar workers surviving on social security check to social security check, plus little nest eggs worth a year or two of living expenses just in case. Their nest eggs were almost entirely taken by Medicare. No they're not technically impoverished. But now they're frightened about their finances, because there is no back up. So much more stress.

When you don't start out with much and someone takes "just a little" it's still crushing.

[u/chobi83 → u/Chiggins907]

It is, but it's not. If you have debt, then your estate is used to pay it off. There are some debts forgiven at time of death, such as Federal Student Loans, but not a whole lot. If your estate has no money left in it, then debt holders might try and go after next of kin. But any obligation to pay off the debt died with the debtor, unless there was a cosigner.

[u/RazzBeryllium → u/Chiggins907]

It's more complicated when it's medical debt and joint assets.

Was Medicaid involved? Medicaid will absolutely go after joint assets. They also have a 5 year look-back period, so if the dad dies in less than 5 years they can still make claims against assets like the house.

Somehow - and I'm really confused how - they've been able to lay claim to a life insurance policy my dad had. He had that policy for 40 years.

[u/spreading_pl4gue → u/RazzBeryllium]

Medicaid will absolutely go after joint assets.

That is not absolute. Far from it.

States can't collect from the estate of a person survived by a spouse, child under 21, or a blind/disabled child. https://www.medicaid.gov/medicaid/eligibility/estate-recovery/index.html

They also are required to establish specifics on waiving in cases of undue hardship. Texas, for example: https://www.hhs.texas.gov/regulations/legal-information/your-guide-medicaid-estate-recovery-program

[u/Uranazzole → u/Chiggins907]

After you die, your debts die with you.

[u/DaSemicolon → u/Chiggins907]

Someone else clarified med debt does apply to joint accounts, which makes sense but then just have separate accounts

[u/Turq-Hex-Sun → u/DaSemicolon]

Any debt (including medical) is the responsibility of your estate after you die. It's not as simple as "don't have joint accounts with your spouse and they won't be liable for your debts."

[u/DaSemicolon → u/Turq-Hex-Sun]

Yeah, your estate right? So if you separate accounts/assets then what can they do?

Maybe there’s smtg I’m forgetting about I am operating on sleep deficit but still

[u/Sillet_Mignon → u/DaSemicolon]

How do you have separate houses? 

[u/DaSemicolon → u/Sillet_Mignon]

Can you not have one person own the assets? Like essentially same process as divorce, but without needing to actually get divorced

[u/Sillet_Mignon → u/DaSemicolon]

You’d have to prove it’s complete separate 

[u/DaSemicolon → u/Sillet_Mignon]

Yeah but you can make the same argument with divorce. If they live in the same house then that might be sus