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Don't Lose Everything to a Nursing Home


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Everything you need to know to keep your family from financial ruin when planning for long term care.

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Don't Lose Everything to a Nursing Home

  2. 2. Maybe your family has already had an incident such as a stroke, fall, or a dementia diagnosis. The fact is that people are losing their life savings because of catastrophic illnesses. Can your family afford to spend $12,000 per month in a nursing home? We see many families who are spending their life savings now or will be shortly. Even more sadly, we see more people who have already spent their life savings but could have averted a financial disaster by doing some proper planning sooner. The fact of the matter is the state wants you to spend almost everything. They won’t pay for care until you are almost broke. Single, widowed and divorced people have to spend virtually everything. The most you are allowed to keep is $72.80 per month (Unfortunately, this is not a misprint). The laws for married couples are still extremely difficult and the at-home spouse can still be impoverished and forced to live a diminished lifestyle. Imagine; this is your reward after a lifetime of working hard, paying your taxes, educating your children and doing all the right things. How is that for a proverbial slap in the face? W R I T T E N B Y D A V I D C O R M A N / G E N E R A T I O N S A S S E T P R E S E R V A T I O N Don’t lose Everything to a Nursing Home!
  3. 3. Moreover…the laws keep getting tougher. The government now looks back five years and scrutinizes your entire financial life to find the smallest details so that they can deny you access to benefits. Also, good luck trying to ask Medicaid – the government - how to go about protecting assets. That’s like asking the fox how to guard the hen house. Let’s face it; they know all the hidden exemptions but they are not about to tell you about them. This is where Generations Asset Preservation comes in. It’s our job to know how to navigate the maze of Medicaid rules and regulations in the Commonwealth of Massachusetts. We prevent our clients from becoming impoverished. We have comprehensive knowledge of these little known techniques for legally saving the maximum amount of money allowed by law. What you don’t know about navigating the nursing home payment maze could cost you everything. This report reveals the steps you should be taking right now to get quality long term care without selling your home, draining your hard earned savings, leaving your family without a dime. E V E R Y T H I N G Y O U N E E D T O K N O W T O K E E P Y O U R F A M I LY S A F E F R O M F I N A N C I A L R U I N | 2
  4. 4. Dear Friend, The Medicaid rules and regulations are nearly impossible for the lay person to understand. In fact, even well meaning professionals, such as attorneys, CPAs, financial planners etc. will tell you it’s too late to do anything. However, Medicaid planning is a very “specialized” field that requires a complete understanding of the rules and regulations. Unless they are doing this full time, these professionals will not have enough working knowledge to properly advocate for their clients. We are in the “Medicaid trenches” on a daily basis and we know the solutions. We help clients deal with the mind- boggling, complex maze of Medicaid rules and we will help you do what is really important…taking care of your loved one. We will explain in plain English how to address the various areas of exposure and to avoid the hidden pitfalls and land mines that await you if you don’t have the proper help. Wishing you and your loved one the best of health. Dave Corman President Generations Asset Preservation Your free report will reveal the steps you should be taking to protect your home and savings and to protect your family’s inheritance. You will learn what you can do to protect yourself. Here are some of the issues we address: • Discover the little known techniques for surviving nursing home costs -- What you don’t know about legal exemptions could cost you everything • Discover the benefits for Veterans and their spouses that could help cover the high cost of home health care or assisted living • Discover the biggest mistakes most people make when a loved one enters a nursing home and how you can avoid them • Learn how to find the right nursing home and how to get quality care • What you can do to save money even if your loved one is already in a nursing home (or going into one) 3 |
  5. 5. | 4 W H AT Y O U C A N D O T O S A V E M O N E Y, E V E N I F Y O U R L O V E D O N E I S A L R E A D Y I N A N U R S I N G H O M E Single vs. Spousal Situations. Most people don’t know that the Medicaid laws for single people are different than the laws for spousal situations. Single people are only allowed to own assets of $2000! Everything above and beyond that must be spent…Wait a minute, not so fast. All income, according to the Medicaid rules and regulations, including pension and social security income, must go to the nursing home. The Medicaid recipient is only allowed to keep $72.80 per month. However, there are conditions, whereby liquid assets can be constructed into an income stream that mirrors a pension. This technique alone can have the potential of reducing the nursing home bill in half! Not only is this acceptable, but Medicaid actually gives guidelines by which we can construct the assets in order to qualify for benefits. Spousal Situations. The laws are far more favorable for spousal situations. An at-home spouse (community spouse) can keep all of his or her assets, in addition to $119,280. It gets better. The excess of $119,280 without any further planning is exposed. However, Medicaid will allow those assets to be converted into an income stream which again mirrors what a pension would look like. The spouse can keep 100% of this income stream. Once again, not only does Medicaid allow it, but they give us guidelines by which this technique can be accomplished. It is written directly into the Medicaid code. However, as a result, and in most situations, 100% of savings can be protected in a spousal situation. There may be tax exposure and ramifications for IRAs and other so-called qualified (pre- taxed) accounts. This is where we can take a snapshot of your specific situation and make recommendations accordingly.
  6. 6. Medicaid (MassHealth) allows for certain so-called allowable spend down provisions to occur if you are in a nursing home, or going into one. These include: A L L O W A B L E S P E N D D O W N S Pre-paying a funeral. Funerals can get fairly costly, averaging $12,000. Even cremations can be as much as $2,000 - $3,000. Medicaid will allow you to pre-pay for a funeral. W A R N I N G : Cash value life insurance policies are considered countable assets for Medicaid purposes and either are attributed to the single person’s $2,000 exemption or counted towards a spousal $119,280 exemption. Medicaid will allow a collateral assignment to a funeral home. This means that the death benefit amount will go towards pre-paying a funeral. Term policies are non-countable assets and do not have to be counted towards assets for Medicaid purposes. Setting aside $1500 into a burial account. Medicaid allows $1,500 above and beyond a funeral. This will pay for funeral costs which may not have been covered under the pre-paid funeral arrangements. These costs are for perhaps a small family function to provide for food and beverage after the funeral. Clothing allowance. Someone in a nursing home will need clothes for what could be a lengthy stay. All clothing items, including sweaters, pants, shirts, underwear, etc. can be purchased in advance. 5 | Paying outstanding bills. Bills such as credit cards, home equity loans and medical bills are perfectly acceptable spend downs. In essence, any legitimate debt can be paid. Capital improvements on a primary residence. Especially in spousal situations where the home may already be protected, it may behoove the at-home spouse to use some money in order to fix bathrooms, kitchens, etc., or to do other upgrades.
  7. 7. | 6 Find out how you may be able to protect your home from an estate recovery claim by the state...AND MUCH MORE! 3 0 0 G R A N I T E S T, S U I T E 4 0 2 B R A I N T R E E , M A 0 2 1 8 4 / 8 5 5 . 4 8 3 . 6 0 1 1 W A N T T O K N O W M O R E ? Learn how gifting money to your children can disqualify you for Medicaid, unless it’s done just right. T O L L F R E E : 8 5 5 . 4 8 3 . 6 0 1 1 W W W. S A V I N G S P R O T E C T E D . C O M