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Investing/Strategies / Retirement Investing
|Subject: Re: shelter those dollars||Date: 4/2/2013 2:14 PM|
|Author: Dwdonhoff||Number: 71665 of 76418|
Have any of youse guys seen a Medicare/Medicaid nursing home facility?
Imagine a combination of Walking Zombies and eau-de-outhouse.
You missed the part about the strategy purpose to keep the senior in the comfort of their own home with their own private assistants.
Far better to plan to have $2+ million so you can afford to go to the Hotel Ritz Luxury Nursing Home.
Halla-to-the-looyah! Who could argue with that!!!
But what about that pesky 5-year look-back period?
Either you go naked (which is where you were before the planning anyway,) or you cover yourself with traditional or asset-based LTC (if you are insurable) for the gap.
As far as item B, I am sure there are lots of folks who tried that, and then ended up without the assets at all because the recipient wasn't as trustworthy as they thought, or something outside of their control happened that put those assets at risk like some sort of debt needing to be repaid or a lawsuit, just to name a few.
Pretty much the risk with all trust strategies... yet they still work.
Personally, I have a real problem with someone doing all those gyrations so that we, the tax payers, can pay for their care while they leave their assets to someone else to inherit.
I take a different perspective. M&M benefits are really refunds of directly-assessed taxes paid by the reclamation of direct benefits. Indirect general taxes (real estate taxes, inflation, etc.) are appropriate for indirect general benefits (roads, armies, etc.) Direct taxes (income taxes, primarily) are appropriate for direct benefits (individual entitlements.)
To that effect, I wholeheartedly subscribe to Judge Learned Hand's famous quote;
“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging one's affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike, and all do right, for nobody owes any public duty to pay more than the law demands.”
Learned Hand (1872-1961), Judge, U. S. Court of Appeals
When you are productive, young & strong and times are good, you pay direct taxes and claim little to no direct benefits... then, when the inverse occurs, you pay in less and begin reclaiming what you have paid for. The goal is to arrange your affairs *OVER YOUR WHOLE LIFE* to have net tax expenses (paid out, minus benefits recollected) as low as possible.
If you're wealthy enough to waive your tax deductions while productive, and waive your tax reimbursements when no longer productive, then its win/win all around!
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