Financial liability does not have anything to do with whether a married couple has separate Living Trusts. Oklahoma law says that spouses are liable for each other's debts to the extent of marital property. Generally, marital property is property that is acquired during the marriage. The liability for each other's debts does not change if you simply change the Title to your assets.
Oklahoma law clearly identifies joint debts in regard to certain "necessaries" which are defined as "all such things as are proper and requisite for the sustenance of man, and embraces, food, clothing, medicine and habitation... consistent with his condition and estate." So if he needs a nursing home, the cost of it falls to the marital (joint) estate. Because of this, some couples have even chosen to divorce in order to protect one spouse's assets from the other's debts.
However, since the debts you are considering are related to nursing home care, there is something else you can try if you are of more modest means. To preserve a home and finances for one spouse to live in the community when the other goes to a nursing home, some people apply for Medicaid.
Medicaid planning is a complex matter if you have more assets than the guidelines allow. Should you consider this route, be sure to hire an Oklahoma lawyer specifically qualified in Medicaid planning.
To your success,Gale Allison, Principal AttorneyThe Allison Firm, PLLChttp://www.theallisonfirm.comhttp://www.linkedin.com/in/GaleAllison
Answered on Oct 10th, 2011 at 3:13 PM