How to Use a Reverse Mortgage for Elder Care Medical and Home Expenses

HNWElder Care Law, Elder Law

By Fredrick P. Niemann, Esq. a Freehold Township, Monmouth County New Jersey Elder Care Attorney

Reverse mortgages have been an on again, off again way for individuals to stay at home for as long as possible.

In 2006 with the enactment of the Deficit Reduction Act of 2005 (DRA), the Federal Government gave permission to all states to create Long-Term Care Insurance Partnership programs.   Each state’s Long-Term Care Partnership Program is designed to encourage residents to engage in Medicaid Asset Protection by purchasing Qualified Long-Term Care Insurance.  Each state’s Partnership Program allows individuals to protect assets that otherwise might have to be paid to a nursing home prior to obtaining eligibility for Medicaid benefits.  A Partnership-qualified policy enables policyholders to protect one dollar of personal assets for every dollar the policy pays out in benefits.

One of the main purposes of the Long-Term Care Insurance Partnership Program is to offer government-endorsed Medicaid Asset Protection to consumers who buy Long-term care insurance, enabling these consumers to protect an additional dollar amount of personal assets and still remain eligible to apply for Medicaid coverage of Long-term care services.  The amount protected with a Partnership-qualified policy will be equal to the sum of all benefits paid under the Partnership-qualified policy when the applicant seeks to qualify for Medicaid.  The total amount of assets that a policyholder may protect as a result of a Partnership-qualified policy is above and beyond the basic allowances that a client and a client’s spouse may keep under the Medicaid program.

Unfortunately, New Jersey has opted out of participating in the Program.  Still, I continue to advocate the thoughtful use of reverse mortgages as a way for individuals without many liquid assets to remain at home.

Contact me personally today to discuss your New Jersey Elder care matter.  I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns.  You can reach me toll free at (855) 376-5291 or e-mail me at


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