Okay, you are doing the trust thing to have the govt pay your care center bill. Knowing they have a five year look back, why didn’t you get a five year LTC policy? Or is that what you did?
Long-Term Care Insurance
- Thread starter cycloner29
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The difference was the cost, the trust was a couple of thousand and will allow our funds to quickly go to our children without having to go through the process we had to with my mom when she passed, which had to go to the courts and took about 6 months. With the trust, the process should take a couple of weeks at most, and one the benefits it shields your assists against paying for nursing care down the road if you need it, if the trust has been set up for 5 years, that is the amount of time the nursing home can go back to look at your assists. We just set up the trust and then took the money that the insurance was going to cost us each month and put that into a different account, that money is there if we ever need it, and if not it goes along with everything else in our trust to our 3 kids.
This can also vary by state. Washington, for example, doesn’t require your assets to be drained to use some Medicaid.
www.insurance.wa.gov
Washington state Long-Term Care Partnership Program | Office of the Insurance Commissioner
Washington state's Long-term Care Partnership Program provides another way to help pay for long-term care costs, such as nursing home care or home care.If you want to qualify for Medicaid, it helps you avoid spending money or transferring things you own. It's available when you need help with at...
My adopted mom recently passed away. She bought her LTC policy in 1994 and never used it. Because she had the policy with the rider for more than 20 years all of her premiums were refunded. Quite the surprise
She forgot to change the beneficiary to her trust so now we have to do probate
@1SEIACLONE
I'd be interested in what they tell you. Where I work, they have a lot of workshops. One of those workshops dealt with LTC and they said one option is to get a single premium immediate annuity that has no cash value. This would provide income for the person that doesn't have to go on medicaid.
I'd be interested in what they tell you. Where I work, they have a lot of workshops. One of those workshops dealt with LTC and they said one option is to get a single premium immediate annuity that has no cash value. This would provide income for the person that doesn't have to go on medicaid.
I've always heard (and did some research to learn more) that you need an irrevocable trust in order to fully protect assets from the Medicaid look back. If they're in a revocable trust, Iowa Medicaid may still consider those assets.
Like I stated we looked at two different insurance companies, they came out to the house and ran us through the different programs. We were right at 60 years of age when we were looking and that increased the price. Most of the programs were for a set amount or years or a set amount of dollars they would pay out depending on the costs. The plans ranges from a basic plan of about $500 a month up to $1200 a month of a deluxe plan that covered everything. After getting the info, we sat down and figured that neither my wife's parents or mine had ever spent time in a nursing home, and we have no cases of dementia in either of our families. So we passed on the idea and decided to take the money that we would have spent on the insurance, and just put that into an account that would be there if we needed it and if not would go to our children.
They have a lot of requirements in the fine print about what they pay for, and when they pay. The one my mom has doesn’t pay the full policy amount until you are in a full care rest home. Assisted living only gets you about 60% of the full rest home coverage.
Same for me when I looked into it in 2008. Only paid $100,000 over three years. Invested in the IRA and we have the cash now no matter what. Single biggest expense my parents have during retirement is the long term care insurance.
My parents had long term care plans. The plans would pay 40% of the cost for hospice or a long term care facility. I don't recall the assisted living benefit. There was no limit on years. The plan only kicked in after the first month was paid by my Mom or Dad. My mom never lived in a nursing home. She was in a Hospice House for about 20 days. I think the cost was about $320 per day six years ago. The LTC plan did not apply because of the short time period. My Dad developed cancer and needed the nursing home for the last 8 months of his life. He had a private room with a private bathroom. The cost just last year was $350 per day. The long term care insurance, his SS, and his pension paid for almost 100% of his expenses.
My parents paid more in premiums than they got back out of LTC insurance, but I know it provided a lot of piece of mind for my Dad.
I haven't checked into LTC insurance, but the big risk I see to not having it is if I or my wife end up in a nursing home for an extended number of years and the other is still alive. Retirement savings could really be drained for the surviving spouse.
I would like to leave some inheritance for my kids, but I also know that they both are very capable professionals that can build their own wealth.
My parents paid more in premiums than they got back out of LTC insurance, but I know it provided a lot of piece of mind for my Dad.
I haven't checked into LTC insurance, but the big risk I see to not having it is if I or my wife end up in a nursing home for an extended number of years and the other is still alive. Retirement savings could really be drained for the surviving spouse.
I would like to leave some inheritance for my kids, but I also know that they both are very capable professionals that can build their own wealth.
Yes, if you can still make changes, they can go after assets. Revocable avoids probate. You need irrevocable to avoid asset seizure.
Going through this right now with my mother. In 6 months time, she went from living alone and all there mentally to breaking her hip and now being in a nursing home for life. In small town Iowa, the not-for-profit nursing home is charging her $9k/month. Right now I'm in the process of getting everything together for when she has to go on Medicaid. At 90 and in her condition, it really doesn't matter. She has zero expenses beside the nursing home. I could see how this would be really bad if it was husband/wife.
On a side note, I was ignorant when it came to the impact on breaking a hip. I had always heard how bad it is to break it when you're old, and assumed they were talking about walking. For her, it was the anesthesia. Apparently, when you're old it can cause major damage mentally, which it did.
On a side note, I was ignorant when it came to the impact on breaking a hip. I had always heard how bad it is to break it when you're old, and assumed they were talking about walking. For her, it was the anesthesia. Apparently, when you're old it can cause major damage mentally, which it did.
The neighbor wife broke her hip while in the care center. She was mid 90s or so. The surgery would have killed her so they had to just make her comfortable and hoped it would heal as much as possible. She live many months of not a year or better like that. She had dementia at the end so we stopped visiting since she had no clue who we were.
Just had a neighbor pass away from Parkinson's. The last couple of years the FD or ambulance would be at their house as she had fallen. She was spending the last few months in LTC, but she decided she had had enough and didn't want the meds anymore. She lasted about two weeks in hospice.
Don't remember where I heard this but, "Statistics show that married men live longer than single men. However, statistics also show that married men are more willing to die."
Furthermore, irrevocable trusts are not suitable for all situations, especially when they are set up and administered correctly. And the transfer to the irrevocable trust has to be made so it doesn't fall within the 60 month look back. There is no simple pain-free.magic bullet solution to Title XIX planning.
I just plan to continue being poor. If they can find that 10 dollar of pennies I have hidden they can have my life savings then.
