Call Us Today At 608.829.2525

Horn & Johnsen

  • Home
  • Estate Planning
    • Wills
    • Trusts
    • Medicaid
    • LGBTQ
    • Legal Concept Videos
    • Events
  • Practice Areas
    • Probate
    • Guardianship
    • Business Law
    • Real Estate Law
    • Legal Concept Videos
    • Events
  • Attorneys
    • John Horn
    • Dera Johnsen-Tracy
    • Events
  • Videos
  • H&J Blog
  • Testimonials
  • Contact Us
Free Estate Planning Book

The Nursing Home Dilemma

The Nursing Home Dilemma

by HJ / Wednesday, 29 October 2014 / Published in Horn & Johnsen News

Clients and prospective clients often ask me about legal options available so that they might qualify for Medical Assistance in the event they need nursing home care at some time in the future. Some suggest gifting to their children during their lifetimes while others suggest establishing an irrevocable trust known as a “Medical Assistance” trust to protect their assets.

This is a very tricky question and if you are considering this approach I would strongly urge you to read the following article published in the personal finance section of the Forbes website: Beware of This Financial Advice About Aging Parents.

While there are different types of irrevocable “Medical Assistance” trusts available, there are many drawbacks to this type of planning including the loss of control over assets, uncertainty as to whether this type of trust will ultimately be effective in the end and the relatively high cost of establishing this type of trust.  You must be very careful with gifting as there are limits on the amount that can be transferred each year without incurring certain gift tax consequences and also due to the possibility that your assets would then be subject to the lawsuits and other creditor claims of your children.  Further, there is a “look-back” period for the transfer of assets within five years from the date a person attempts to qualify for Medical Assistance.  Finally, please remember that Medical Assistance (i.e., Medicaid or Title XIX) is a welfare-based program and that qualification for this program may severely limit the health care options available to you when the time comes.

Often, there are better alternatives.  For example, there are some great long-term care options now available that can protect your investment and offer a guaranteed death benefit – even if you never use your policy. In the alternative, your financial advisor may be available to re-structure your assets so that they can provide a lifetime income stream. Further, an Irrevocable Life Insurance Trust can be set up to replenish your estate in the event your assets are depleted by long-term care costs.

If you are concerned about nursing home costs, please talk to your estate planning attorney and a trusted financial advisor about your options before making any decisions you might regret in the future. Remember, your primary objective should be to take care of yourself (and your spouse) first.

Source: New feed

Tagged under: Charging Fees

What you can read next

estate planning goals 2020
Understanding How Property Ownership Affects Your Estate Planning Goals
estate-planning-madison-wi
Guest Blog: What is a Daily Money Manager?
2021 Avvo Clients’ Choice Award!

Recent Posts

  • dictionary picture of probate meaning

    Help Your Heirs Avoid Probate With a Living Trust

    Probate can be an extremely time consuming and ...
  • I Don’t Have Children – Do I Really Need an Estate Plan

    I Don’t Have Children – Do I Really Need an Estate Plan?

    Many people who have no children wonder whether...
  • person jumping up steps to the end

    Steps to Prepare for End of Life

    Many people neglect to take all of the necessar...
Horn & Johnsen SC - Estate Planning Center of Wisconsin

Estate Planning
Guardianship
Business Law
LGBTQ

Probate
Medicaid
Real Estate
Special Needs

APPOINTMENT LOCATIONS

Madison
Waukesha
Baraboo
Brookfield
Sauk City
Janesville

DOWNLOAD PERSONAL INFORMATION QUESTIONAIRE

SUBSCRIBE TO HORN & JOHNSEN

We respect your privacy and take protecting it seriously.

OFFICE LOCATION

Horn & Johnsen SC
8446 Excelsior Drive, Suite 102
Madison, WI 53717
P. 608.829.2525
E. info2016@hornjohnsen.com
Sitemap

Copyright 2019 Horn & Johnsen. Powered by Digital Fitness.

TOP