Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: broddus Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: Nursing home asset depletion Date: 1/5/2001 8:07 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
She currently gets a pension and social security, no longer owns a home, and has good medical insurance coverage (fortunately!). She has some savings in bank accounts and IRA's, and has a small amount of very conservative stock.

My understanding is that once you enter a nursing home, all your pension and soc sec money goes toward the nursing home fee, and the remainder is taken from your assets. Only when your assets are depleted will Medicaid kick in.

My Mom would like to leave a small inheritance to her children and grandchildren rather than spending all she has on a nursing home. What, if anything, can we do to protect her assets? Is it wise to utilize the $10K per year tax-free gift option?

I would recommend that you look for a good Elder care lawyer for some advice immediately- he should be able to draw you up a plan identifying,and scheduling when and how you should transfer funds.
He maybe be able to help you to transfer nearly 50%, possibly more, of these assets to her heirs.

When your Mom applies for Medicad, they will want her to account for the disposal of her assets during the past 3 years- so keep good records.
I think that the 10k gift is an excellent idea but should be scheduled to fit in to the plan of transfering 50% or more of your Mom's assets in spending down.

Unfortunately,I think, you are right about the pension and social security checks.

There are some other very important things for you to keep in mind if you haven't already.
1) Power of Attorney- especially if your Mom has cognative issues.
2)Health care proxy
3)A Will - resonably current
4)Your Mom can pay you a reasonable monthly fee for managing her affairs.

I hope things come together for you and your Mom !
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement