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Medicaid Planning is a huge industry. Thousands of lawyers around the country make a living advising people how to avoid losing their life savings and their home if they enter a nursing home.
Medicaid planning can be complicated but if you break it down to its simplest form, it involves getting assets out of your name and out of your control at least 5 years before entering a nursing home.
People do this for two reasons: First, an individual must spend 100% of their nursing home expenses (depending on where you live, that’s anywhere from $6k monthly to $10k monthly, unless, among other requirements, you have less than $2,000 of what’s called countable resources (money in the bank, investments, real estate that is not your home), AND you have not transferred any assets out of your name in the previous 5 years.
But while the entire Medicaid Planning industry is hammering you with “Protect your assets from nursing homes, make yourself eligible for LTC Medicaid, avoid nursing home poverty,” some people out there should not go through the time, expense, and burden of attempting to position yourself so that you qualify for Medicaid if you enter a nursing home.
0:00 Intro
1:50 1st Reason: Estate Too Large
3:04 2nd Reason: Can’t Protect Your Income
5:03 3rd Reason: Family Won’t Put You in Nursing Home
6:28 4th Reason: You Must Relinquish Control
7:48 5th Reason: You Would Qualify Anyway
8:51 6th Reason: You Have Ethical Concerns
9:45 7th Reason: Your IRA Is Large
11:23 8th Reason: Don’t Have 5 Years
12:16 9th Reason: Nursing Home Care Is Poor…(read more)
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9 Reasons NOT To Protect Assets From Nursing Home
As we age, it’s natural to consider the possibility of needing long-term care in a nursing home. The high costs associated with such care often make individuals contemplate protecting their assets to ensure financial security. While it may seem like a prudent decision, there are valid reasons why protecting assets from nursing home costs may not be the best path to take. Here are nine reasons to consider before making this decision.
1. Legal implications: Attempting to shield assets from nursing home costs can be seen as fraudulent by the law. It may lead to legal consequences, including fines and penalties. It is essential to comply with legal regulations concerning the payment of nursing home bills.
2. Ethical considerations: It’s important to consider the ethical side of asset protection. Nursing homes provide vital care to individuals in need, including medical assistance and emotional support. By protecting assets, individuals may be depriving themselves of crucial services while also burdening the healthcare system.
3. Medicaid eligibility: Medicaid is a federal program that provides healthcare coverage for low-income individuals. Protecting substantial assets may disqualify an individual from Medicaid and limit their access to important medical services.
4. Financial planning: Instead of focusing on asset protection, it is beneficial to engage in strategic financial planning. Discussing options with professionals can help ensure sufficient funds for nursing home care while optimizing government benefits and minimizing expenses.
5. Insurance alternatives: Long-term care insurance policies can be an excellent option for those concerned about nursing home costs. They provide coverage specifically for long-term care and can ease the financial burden significantly.
6. Burden on family: By protecting assets from nursing home costs, individuals often shift the financial burden to their children or other family members. This can create tensions within the family and jeopardize relationships.
7. Impact on inheritance: Protecting assets may have unintended consequences on estate planning. It could diminish the inheritance left for future generations, affecting their financial stability.
8. Peace of mind: Knowing that one’s assets are protected may provide a fleeting sense of security. However, it may come at the cost of losing peace of mind by constantly worrying about potential legal issues or financial ramifications.
9. Public perception: Engaging in asset protection measures can sometimes be seen negatively by the public. It may be viewed as an unfair tactic to avoid paying for necessary care, contributing to the overall societal debate on healthcare accessibility.
Ultimately, the decision to protect assets from nursing home costs is a personal one. However, it is crucial to consider the consequences, both legal and ethical, before taking any action. Seeking advice from financial planners and legal experts can provide guidance on navigating the complex landscape of long-term care expenses, optimizing benefits, and ensuring a secure future.
thank you for the videos! Informed, real, and trustworthy:-)
Honest information. Thank you – I was on the verge of transferring property into an irrevocable trust until I found out my income would disqualify me from receiving Medicaid assistance. Your video reinforced my research and saved me over $5,000 legal fee. I now believe if I need to go into a nursing home, then I will use my assets to help pay for a well researched, close to perfect home. (Does anyone believe there is a 5 year/5 star nursing home?). If there is please reply.
Your last video said to get family trust now your say do nothing Wha?
Does someone who is NO LONGER on Medicaid, and will not be again (due to an inheritance), need to be concerned about MERP taking the remaining cash funds upon in an Irrevocable Trust, upon Death? And, can the funds deposited after the inheritance and removed from Medicaid be spent in any way they want (gifting) without MERP requiring giftees repay? Again, Not to re-apply for Medicaid, but just the Recovery after Death, is there a look-back period ?
My kids said there is no way I would ever live with them! I am receiving medicaid now for health in NY and doctors are horrible and can't imagine a medicaid nursing home in NY. I own a house – should I sell it and rent somewhere as I am bringing in pathetic social security now or transfer the house to the kids so medicaid can't take it. I am 64 years
Is there a value cap on buying a vehicle while on Az Medicare and Medicaid
What about if you take your money in life insuranc
This video was so helpful. I was thinking about estate planning trusts for my husband and I but after seeing this maybe not. Thank you for this video!
How do your know when someone will go in a nursing home???? 5 years makes no sense no one has a crystal ball
I learned so much from this video. You are doing a real public service by posting. Thanks.
Thank You
You offer very sound advice and I thank you for being so truthful and honest. Medicaid care is horrible. When my mom passed, she had serious Alzheimer's and only lived on a small SS check. My "inheritance" was a funeral and burial bill. Only one of the homes in her home town had room for her and I visited as often as I could. Between the Alzheimer's and the nursing home it was a living hell for her. I don't want that for me. Fortunately I live in Florida now and probably have a better chance of dying by getting shot or getting killed by a drunk driver. No nursing home if I can help it.
Hi. My mom is 77 year old iam single 54 years. If i get herthe program. Hcbs self directed
And she hire me to take care of her. And medicaid pay me to take care of her Does medicaid will take her money she has in the bank. Thanks
Thanks for a this concise video. I believe the Medicaid '5 yr lookback' period starts when you apply for Medicaid, not when entering the NH?
Q: I was told Trad IRA Disbursements could be used in some states to fund NH costs tax free? If not the case are there any other investment types recommended to fund a nursing home stay? (Besides a Roth IRA)
Thanks so much. This information is very balanced and helpful.
This is VERY well done. We keep having friends and family tell us we should do the trust thing. After watching this, I’m going to leave our assets as is.
I was in sales and I called on healthcare facilities. Out of 25 nursing homes I called on only one did not smell of piss.
But America canngives trillions to other countries every year, time for America first
Is it considered an "uncompensated transfer" if I were to pay off or make payments to the balance of a child's car loan (20,000) or mortgage (85,000) instead of simply transferring to them 20K or 85K in cash?
If you're going into a nursing home, your income is going to be the last of your concerns. I doubt you'll be taking a cruise to Maui..
IF I have to go to a nursing home. I am checking out for real .
Great video. Thanks
Where I am, it costs $35 per hour or 15k per month for one private care staff. My dad has dementia and may live 5 years. My mom can't deal with him and staff at home. It's too much of a disruption. So we are getting him qualified for medicaid. We will pay the penalty and minimize losses to assets for my mom.