Frequently
Asked Questions:
Q. How do I pay for my spouse's nursing home costs, when
we don't have long term care insurance?
A. Many Massachusetts Nursing Home residents are on
MassHealth (Medicaid) assistance. Most of these seniors did
not enter the nursing home poor. They became poor while paying
for extended care. Private payment by these retirees will drain most,
if not all, of the family assets. Eligibility for assistance
on the payment of nursing home fees is a complex maze of rules
and regulations. Even middle-class couples may become eligible for major
assistance IF they seek competent advice. Issues like
“Community Spouse’s Resources Allowance”, the “Look Back
Rules” regarding transfers of assets, and other critical
financial issues will vary significantly from one elder couple
versus another elder couple.
Q. How do I protect my home from a Medicaid/nursing home
lien?
A. Transferring the title of your home to the
children is NOT the answer to the problem and may create many
serious tax, legal, and Medicaid challenges. Do you really
want your daughter-in-law to be your landlord? How about your
"Ex-Daughter-in-Law" as your landlord?
Here again the New Deficit Reduction Act signed into law February 8th
2006 alters an old strategy, the "Life Estate" deed to kids.
It now converts a helpful strategy into a potential time bomb for parents.
Don't alter the title to your home unless your real estate or general
practice attorney gets a second opinion on the long term negative
effects on parents' future eligibility for Medicaid benefits. This is
especially true for single parents [widows and widowers] and/or parents
who have no Long Term Care insurance and can not reasonably get coverage
before they deed the home to children. (See our Long Term Care
financing section on this web site)
A word here about “legal advice” for your consideration: We
work with your Lawyer, Accountant, and Stock Broker as a team.
If you don’t have an attorney, we can give you a list
of attorneys that we have worked within your area. This “team
approach” will NOT increase your cost, and in many cases, it
will actually save you money.
Q. How do I keep my assets out of probate when I die?
How do I arrange for my children to get my assets directly,
privately, and free of fees?
A. Joint ownership of
assets with your children offers NO benefits to retirees while
they are alive, some benefits to heirs when their parent(s)
pass on, and MANY HAZARDS to retirees while they are alive.
WHY? Your heirs operate in a different world today. Divorce,
law suits over auto accidents or children’s various business
dealings, and or tax liens can all affect the elder parent’s
access to these jointly titles assets.
We show pre & post retirees how to arrange ALL their assets to avoid
probate with NO COST or risks to assets. Lawyers have precious
little time to organize this with you and monitor the probate avoidance
strategy yearly. Bankers may offer to help but without
an extensive knowledge of Medicaid regulations you could be
“jumping out of the frying pan and into the fire”.
For answers to additional questions you may have, please
contact Mr. Pelletier at
413-747-5500, or
800-552-5449.
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