Liquidating assets for nursing home
(Annuity regulations permit buyers to back out for a short time after the purchase.) A final caveat and explanation of deferred annuities: There is no benefit to purchasing an annuity in advance of its need.
"Skilled" nursing care is really like extended hospital care, which is very different from "custodial care".The New York State Department of Health is expected to develop guidance for hospitals regarding the written notice.The law went into effect on October 21, 2013, but the provisions governing notice do not go into effect until Monday, January 20, 2014. You must be admitted to a nursing home within 30 days of being discharged from the hospital. The skilled nursing and/or skilled rehabilitative services are those furnished pursuant to physician's orders which: (a) require the skills of professional personnel such as a nurse or therapist (b) are provided either directly or under the supervision of such personnel. Margolis Medicaid (Mass Health in Massachusetts) is the primary source of payment for long-term care services in the United States.To qualify, however, those needing long-term care must become impoverished under Mass Health's complicated and often-changing rules.I have spent 40 years helping seniors and their families protect their home and life savings by showing them how they can plan to qualify for Medicaid and actually qualifying them for Medicaid in the event of a medical emergency. Medicare might provide payment for the first 20 days and part of the next 80 days of care in a nursing home, which usually results in a contribution by you of about $167.50 per day for the 80 days.
This document is intended to answer seventeen of the most frequently asked questions I am asked when I meet with families who are interested in protecting their life savings and home from being wiped out to pay for nursing home costs and uncovered medical expenses. WILL MEDICARE PAY FOR ALL OF MY NURSING HOME COSTS? This amounts to a personal private pay liability of about $13,400 for the 80 day period.
But in that setting, immediate annuities can be of great benefit in protecting spouses of nursing home residents and to a lesser extent can help preserve assets for the children of nursing home residents who are unmarried or widowed, which will be the subject of another blog post.
Following are the most significant rules governing eligibility for Mass Health coverage of nursing home care: Before going any further, at this point I generally advise my clients to ignore logic when considering taking Mass Health planning steps.
Deferred annuities can be "annuitized," meaning they can be turned into immediate annuities.
But they can be a problem for Mass Health purposes if owned by the nursing home resident since the income stream would be payable to the nursing home instead of to the healthy spouse.
(Especially in this low-interest rate environment, annuities don't pay very much, but they can save a lot of money by qualifying for Mass Health coverage of nursing home care.) If she accumulates these funds, at the end of five years she will be right back where she started before John needed nursing home care.