@Abrowneyegirl wrote:
I just spent a lot of time this morning trying to help a friend untangle a MESS. The problem has being going on for months and she finally reached out for a shoulder to cry on.
Here is what I learned and thought I would pass on the help others.
Be VERY careful about moving a seniors money/assets 'around' in attempts to 'save peoples inheritences' and prevent using the money to provide for senior care.
The state and fed gov have caught on to this and the senior maybe left without benefits.
Brief story-
Years ago her aunt and uncle gave each of the children a portion of their farm/real estate so that now the aunt and uncle have no assets or money in their names.
The uncle now needs skilled nursing care and the aunt needs assisted living. AND they have no $$ to pay because of the gifts they gave their children, now they are ineligible for Medicare/Medicaid. The government wants the children to give the gifts back, of course none of them are in the position to sell the property they are living on to pay their parents back and until enough of they did this to meet the % the government is requiring the parents 90 and 93 years old are stuck- they need care that no one can or will pay for.
SOMEONE gave this family very bad advice!!!
Now my friend and her relatives are trying to arrange of schedule of who the aunt and uncle are going to be living with for weeks at time with each child taking a turn to provide care for these poor seniors.
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@Abrowneyegirl, this would not be Medicare. The couple is still covered by Medicare, it is just that Medicare does not cover expenses for custodial care in either a long term care or assisted living setting. It never has and is probable that in most of our life times, changes will not be made in Medicare to where it will cover those costs.
This is solely Medicaid that is primarily regulated by the state. There has been a "look back" rule for as long as I can remember. People may not know about it, but it doesn't change the fact that has been the law for quite some time. For older individuals to qualify for Medicaid, they do have to spend down assets to a certain amount before they qualify for Medicaid.
In most states, if a there is a surviving spouse living in the house they do not require the house to be sold to qualify. But if the spouse is not living in the house, most states will require the house be sold and those monies be used before they can qualify for Medicaid. However in many states, if the spouse moves out of the house or dies while the other spouse is on Medicaid, the state can place a lein on the house to recoup expenses they have paid out when the house is sold.
People really need to think about that. You can't just move your assets and then file for Medicaid within a certain period of time and expect Medicaid to cover those expenses incurred for elder care. It just doesn't work that way.
Hopefully, the family can work out a schedule to take care of their Mother and Father. Many families do this. And in some cases, the responsibility may fall on just one person.
It might also be an option for the children to all pitch in to provide long term care for one parent. That parent's social security check can be used if the kids could combine together to make up the difference for the monthly expense of elder care for one, while they try to rotate taking care of the other parent. Then again, that might not be an option depending on everyone's incomes and expenses.
Or they can sell the property they were gifted and use that money to take care of their parents.
There are estate planning attorneys that will advise and help with this that they might want to consider. The attorney may be able to give them the best advice for the particular situation they are currently facing.
At any rate, the lesson is not to plan on trying to transfer or hide your assets unless you are being advised by an estate planning attorney.
* Freedom has a taste the protected will never know *
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