Retirement Plans

[GNBRETT]

While assisted living is expensive it is much cheaper than the dreaded nursing home. In my area assisted living can be found for 2500 a month compared to a nursing home at over 6000.
You have to get those assets out of your name five years before entering the nursing home. The problem is finding someone you trust. If you enter the nursing home with assets it begins the medicaid spend down. I suggest you check out your states medicaid rules for your father. My state only takes half of the assets if the other spouse continues to live in the family home.

the median price for assisted living would be $3000 in west virgina and thats with a crappy one bedroom shoe box. if you want something decent its gonna be closer to $5000 a month. the government only goes back 5 years on assets if you dont have cash to spend. my parents have been saving $25k a years for the last few years in preparation for it if it ever happens. if he or my mother die peacefully then the money goes to me and my sister.

they live in Tenn so I guess I shud look into the laws there. u say ur state only takes half wen alive. thats interesting. but wat about wen the other parent dies and the kids are left the money is the state entitled to any of that? Im really not sure are you?

 

[hillbilly]

they live in Tenn so I guess I shud look into the laws there. u say ur state only takes half wen alive. thats interesting. but wat about wen the other parent dies and the kids are left the money is the state entitled to any of that? Im really not sure are you?[/QUOTE]

Here is something I found on Google that may or may not be current.
http://www.tennessee.gov/sos/rules/1240/1240-03/1240-03-03.pdf

My only experience with this is that my Mother was in assisted living for 3 years and now has been in a nursing home for going on 2 years. There are no assets except for cash which we are using to pay the monthly bills. I have instructions from the social worker at the nursing to to contact her when she starts running low on money to apply for Medicaid.
I suggest that your parents speak with a lawyer who understands the Medicaid rules and how to protect assets. As I understand it 5 years prior is easy to set up and after entering the nursing home much more difficult.
As for the comment about nursing homes are places to store old people until they die I have to agree. Was having a conversation in the tv lounge when an old fellow in a geri chair noticed my helmet and jacket. He started telling me that he owned the first Honda 300 Dream in the county. Not to mention the old ladies that tell me about riding with their deceased husbands. It's sad.

 

[GNBRETT]

copy that thanx

 

[TallTom]

I am only familiar with Wa. state and Ms. Estate/Probate Law. But all states are basically structured the same in intent. They vary in amounts and assets transfers and look backs but maybe this will help. And I'm using this for illustration purposes only. If 2 people are worth 100K and 1 dies. They leave everything to the other. The remaining spouse can be worth half that amount and be considered exempt from asset seizure. More than half and the state can seize the difference if and only if the remaining one applies for state aide such as Medicaid living assistance. This varies from state to state but the intent is to essentially cap how much a person should need to have a reasonable lifestyle at the age they are.

None of this is automatic. The states only care about this if you ask them for financial assistance. Once you do, they will seize anything over the minimum they allow. They will be paying for the same facilities that would be costing them that 6K a month. The state can't by any law give them sub-standard care. "Sub Standard" has become a prostituted concept by many healthcare facilities these days. They are plain and simple for profit businesses. So the state pays pretty much what they would be paying. Roughly. There will be some discounts but it isn't like Medicare or prescription meds. price swings.

If both die, then the assets become probate items dispensed by the will. They will be taxable to the receiving party of a probated asset. So if parent B is left with 75K and they die and you get that 75K, you are taxed on that.

The legal way around it, is gifting or placing assets into an estate. This must be done within a period of time to be past the state's "look back" period. This period is specified so that people can't see the end coming and protect assets from taxation and seizure by the state. And any gifting has to be below state specified limits and past any "look back" periods. In other words, mom can't "gift" you 75K 3 months before she is dying, or she gets sick and knows she needs extensive healthcare.

I don't know of any states who has anything less than 2 years look back and Washington state has now changed the laws to be a 6 year look back period.

In other words, you should have an estate plan long long long before your parents health is in a questionable state. My parents plan was done in 2004. My dad required full time care for the last 2 years of his life. My mom provided it. So little was spent compared to what could have been. She has the entire estate at her disposal to benefit her for as long as she lives. Anything left inside the estate, will become probated items as specified by the will.

Having just typed all this, states are going broke and changing Estate Planning laws to try and recoup more assets being protected. So please please please don't assume that what I outlined above will be the same your attorney tells you today. They can't go back and crack into an estate that was created by the laws at the time it was created. But they are beginning to challenge estate assets that don't "appear" to be serving the Trustee as it was originally set up to do. I just went through this about 6 months ago.

 

[hillbilly]

Thanks Tom. You explained that very well. I have never been told that I was correct so elegantly.

 

[Loomis]

We Have a Enough people on the Org, Lets Buy a Cabin together and set up a Time Share..

 

[Revlis]

I feel a bit sorry for the folk who scrimp and save evey nickle.I mean I sure dont want to be poor when I'm old,but I dont want to be rich and have missed out either. My harley weighs 8-9 hundred pounds,I wanna enjoy that thing now,not wait for the golden years to try and tour on it. We have a convertible now,I want to have my hair blowing in the wind now,not when I'm 70 and dont have any hair left.I guess,find the happy medium,have some fun,but have a plan aswell. Me Mum always used to say"Everything in moderation." If you wanna smoke,go ahead,just dont do 2 packs a day.If you wanna drink,make the bottle last a week,not a night.ETC ETC.
I've lived life exceeding that advice at times,but I sure have had fun. At one point I had 7 insured vehicles at my house...for 2 drivers...thats nuts. So I cut back...to five.LOL. 5 is just right. Busa for me to blast around on. H-D bagger to haul us on longer trips in comfort. Audi turbo convertible for the HouseMouse because she works very hard and deserves a "Just her Toy", the big 1 ton turbo diesel 'cause it makes sense when you own a home(you always need a truck) and will tow a 5th wheel one day,and an old jeep TJ to haul the Rottweillers in so they dont trash the nice vehicles. Makes sense right? LOL.

Moderation,thats the key. Take one or 2 trips a year if you can,just dont let it or anything else become a sickness. Some folks travel all the time,and come home to a huge mortgage on a run down house.That aint right.
I just live life the way I want to. "Keeping up with the Jones's" fug that. I dont care what other people have. We have friends and family that are just a couple like us,no kids in the house. Some of them live in 5000 sq ft homes. Go for it. Not me,too much to clean,too much to heat,too much upkeep. I like my little place 12-1300 sq ft with a 500 sq ft detached shop. I'd rather have another shop than a dining room that sits 16 comfortably. I dont really feel to sorry for folks that lost it all when the bottom fell out. Its called living within yer means. We bought a house that we could afford,even if one of us lost their job. This idea of mortgaging to the hilt is stoopid. Folks figure home owning is a great investment,I disagree.Sure pay 400 G's now and hope it will be worth 8 when you go to sell it,awesome right,you just made 400 G's. WRONG.You prolly broke even or lost.When they were still offered some folks I knew took out a 40 year mortgage.Add up all those payments and all the maintenace and you just paid 800G's for a 400 G house. Mortgages are a great way to save if you cant invest each month for one reason or another. Do the math.

When we whent shopping for a house the bank said we were good to go,they offered half a million. 500K,no thanks. We found our sweet little house that we both loved and could retire in if we wanted(one level rancher,no stairs to break a hip on) for 161,000.oo Lots of dummies would have run out and spent the 500K or even asked the bank for more.We didn't want to live "Mortgage Poor." Sure,great big villa...spend every waking moment in worry and mowing 5 acres ever weekend,no thanks. My yard is 75X150 feet and I fuggin hate looking after that much.

Whatever you choose to do,I would say just live happy.If being a multi-millionaire when yer 70 is what floats yer boat,go for it.

If you like all the toys and travelling do that.

The happy medium is where its at for me.

All the best to all,with your chosen path.

RSD.

WHOA WHOA WHOA.... Did nobody catch this?

I want to have my hair blowing in the wind now...

Nose hairs maybe? Last time I checked you still hadn't allowed any hair to grow on that melon of your for years... Or is your hair no longer scared, did you ease up on it?

I mean it sounds romantic and all, but there's a lot of things I want that just aren't going to happen...

 

[RedBull]

Travel the world more often .

One of the most
underestimated
educations out there .

Still amazes me
how many people
have never left
the United States .

Pretty sad .

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