9 Reasons NOT To Protect Assets From Nursing Home

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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

[karodora]

As an only child, I knew that I would be responsible my parents’ care. I know this seems odd, but when I was young and first employed I purchased a life insurance policy for myself and named my parents as beneficiaries. Although it wasn’t a high value policy—the value did increase each year—the premiums were inexpensive because of my age. My thought was that if I died before my parents, they would have something to provide for their care if I wasn’t there. I’m now 74 years old and my parents have died, but it always gave me comfort to know that I did that for them.

[schadlarry]

I hope they have Kevorkian Home Kits available at Walmart in the near future. Nursing homes are a life sentence with no chance of parole.

[btpuppy]

So the bottom line is always the same: you’re screwed unless you are wealthy.

[karodora]

My brother and I used my Mom’s financial assets (about $300k) to provide good quality care for her at a private-pay memory-care facility. Our commitment was to use everything she had for her needs, and we felt blessed to be able to do so.

[lovemykids]

7 years ago both my children said no way about going to a nursing home. My daughter passed away and my son married a girl "WHO" NO DOUBT in my mind!, I'm going to a nursing home. Which is what I've always told my kids. I'm just saying, no matter what kid's tell you now, thing's happen😔 and then other things change if spouses change. Please think about that.

[commonsense]

How outrageous. Since nursing homes cost so much per month, you would expect that the level of care would be top notch. However, to hear that the care is extremely sub-par is a travesty, and people shoud be outraged. Where is Congress on this? This is where we need strict regulations on nursing homes. I've heard that we do, but are they enforced? Apparently not, so what a travesty. So we need more strict regulations and severe penalties for nursing homes that are actually enforced for those facilities that don't comply. What a shame for seniors in the final years of their lives. We can do better as a nation.

[WScott-gdmj]

Many who demean Medicaid as immoral or mooching have never had to face a 5 or 8 or 10k monthly bill out of their own pocket for a parent’s nursing care after the parent has exhausted his or her resources.

[yooperlooper]

As with my family, we didn't want to put our mom in a nursing home but her dementia got so bad that we could not properly take care of her ourselves. Fortunately we found a wonderful Methodist care facility in Chelsea Michigan where she had very good care. Her aides were truly loving and kind. She ran out of her own money there but they let her keep her private room on Medicaid anyway until she passed.

[sheaview]

The sad news is that healthy people in their 80s and 90s who can't take care of themselves spend many years in nursing facilities. My mother-in-law lived for 8 years after going to a facility, and my 92-year-old mother was told by her doctor that she'll probably live to be 100. Medicaid needs to require more quality care from these facilities.

[dongeorge]

As a (non-elderly client) attorney who is often asked about such techniques, I believe that your presentation is the best one I have ever heard.

[jau]

Ive learned more from you watching this than from our attorney. Thank-you sir!

[Aortadetroit]

Damn! We just fired a high priced firm specializing in Trust planning. We were very uncomfortable with them because it felt like a factory line approach to planning. We actually got a sizable refund which made me suspicious. This video alone could have save me all that trouble. They pushed hard for an irrevocable trust, (10 times more expensive than other trusts and yearly Maintanence fees for life!) . They weren't answering our questions at all and were angry we kept asking. We have a small but successful family company and income sources and Roth IRA's that mean our income would have remained low six figures (minimally) for life and this alone would have rendered us ineligible for medicaid type coverage of a lengthy assisted living stay AND we would have incurred six-figure(!) tax liabilities because of our Roth IRAs while losing the ability to pass those on tax free to the kids! Thank You Paul. You have confirmed all my suspicions in 11 minutes and have a new subscriber.

[amypapesh]

As an estate planning attorney who does not do Medicaid planning but gets asked the question often, I think this video is fantastic! The best explanation I've heard. Thank you!

[neverjethot]

I was in a rehab (nursing home) for a month from an accident- The people who work there were kind and helpful, professional, the facility clean and didn't stink... I was fortunate that it is only about a mile from my house and my wife and kids visited often.
But... probably ALL nursing homes suck. It's not home, and it's not pleasant to have to ring the nurse to help with using the commode, and other built-in indignities.
. I hope to never experience that again.

[ClassicCarGirl]

Thank you for this.. I knew in my heart there is no way I could let my mother live that way when she had saved the money for much better care. At 87 yrs old an a former nurse.. she would be tortured with that kind of care. She's staying with me for as long as she wants.

[dwaynemauk]

Years ago, we purchased the home for my parents, and they rent from us. It's in our name, and we take care of the insurance/taxes/upkeep and we charge them monthly rent.

[WhoIsWhatIDK]

We had to suddenly place my mother in a nursing home after a 2nd fall & due to her Alzheimer’s she became unable to walk. We had done no planning. Hired an attorney to help with the spend down and found a wonderful Medicaid memory care center. They are out there!! ❤

[kebl]

I moved my father into my home for the last 7 years of his life. Best decision ever.

[brucecanny]

I wish this was your first video. I just finished setting up a irrevocable trust for my mom after following your previous videos and now I'm second guessing myself.

[PATSYBSWEET]

We paid close to 7K totally for my Dad’s nursing home a month. He was in a double room. The guy who was in with him was on Medicaid and received the same care as my Dad did. It took all my Dad’s money for the last 14 months of his life.