Mother in Assisted Living - Protect Assets Now??

What is the name of your state? Connecticut

We recently put my mother in an assisted living facility and her monthly income from social security and pensions is enough to make the monthly payment. The question I have is - she has $500,000 in investments and $200,000 in her house (paid). How can we protect these assets now????What is the name of your state?

Surely, you are not asking how to hide these assets so that she will qualify for Medicaid. No one here will assist you in doing so. If you are asking for other advice, you need to be more specific.

Quite frankly, having had a mother on SS and in assisted living and a nursing home before the recent additions for prescription coverage, your mother is in great shape with $700,000 in assets in addition to having her monthly assisted living fees covered. Her out of pocket expenses should be quite reasonable if you make the arrangements for purchasing consumable products rather than allowing the facility to do so at very inflated prices. So, don't stress yet.

The time to get rid of the assets was SEVERAL years before she entered the facility.

You are wanting to take all of your mother's assets away from her so she cannot pay for her own care? Do I detect some of the green-eyed monster? The yearly cost of a nursing home runs around 70,000. The income from her investments should come close to covering this without pensions and SS so I don't see what you are worried about. Purchase additional health insurance to cover any doctor/hospital expenses and a long term care policy if she can medically qualify. Check to see if the state has a Partnership Program that allows you to protect assets. The state office on aging can tell you.

The DRA of 2005 will disqualify her for Medicaid for any transfers within the 5 year lookback period. The only way to qualify for Mediciaid is to have no assets and then you are probably going to have substandard care. She is going to be much better off to be able to pay for her care privately even if this means less for you when she dies.

You need to consult with a qualified Elder Care Attorney. There is a list at NAELA.

Additional information:

http://www.cms.hhs.gov/DeficitReductionAct/10_TOA.asp

Transfer of Assets

The cost of long-term care continues to increase, making such services difficult to afford for most individuals, and inaccessible for many. The Medicaid program provides coverage for long-term care services for individuals who are unable to afford this care. Some individuals, with assistance from financial planners and attorneys, have developed methods of arranging assets in such a way that they are preserved for the individual and/or family members, but are not countable when Medicaid eligibility is determined. Various techniques are used to artificially impoverish Medicaid applicants, including gifting of assets to family members, investing assets in financial instruments that are inaccessible, and executing financial transactions for which fair market value is not actually received. The DRA includes several provisions designed to discourage the use of such "Medicaid planning" techniques and to impose penalties on transactions which are intended to protect wealth while enabling access to public benefits.

The lookback period has been increased to 60 months.

http://www.cms.hhs.gov/DeficitReductionAct/Downloads/BackgrounderTOA_.pdf