Protecting Assets from Nursing Home

[msessom]

What is the name of your state (only U.S. law)? North Carolina

My aunt & uncle have no children, and all assets are jointly owned by both. My uncle recently was admitted to a nursing home. At the moment, Medicare and its supplement are paying for the first 100 days. They have no will, trust, etc. They own everything (nothing on loan)--land, house, vehicles, etc. They would like to leave their assets to when they die. They cannot afford nursing home costs, and are in the process of applying for Medicaid.

Is there a way for them to protect their assets so that once they die, the nursing home/state/medicaid, will not take their assets away from their heirs? Will an irrevocable trust help? I understand that Medicaid will put a lien on their house after they die, and will receive a portion from their estate. I also know that my aunt cannot give away anything or put the stuff in someone else's name. What can they do?

 

[CSO286]

What is the name of your state (only U.S. law)? North Carolina

My aunt & uncle have no children, and all assets are jointly owned by both. My uncle recently was admitted to a nursing home. At the moment, Medicare and its supplement are paying for the first 100 days. They have no will, trust, etc. They own everything (nothing on loan)--land, house, vehicles, etc. They would like to leave their assets to when they die. They cannot afford nursing home costs, and are in the process of applying for Medicaid.

Is there a way for them to protect their assets so that once they die, the nursing home/state/medicaid, will not take their assets away from their heirs? Will an irrevocable trust help? I understand that Medicaid will put a lien on their house after they die, and will receive a portion from their estate. I also know that my aunt cannot give away anything or put the stuff in someone else's name. What can they do?

They could win the lotto.....

In all reality, there is nothing that can be done now, because if the state is going to be shelling out to provide said nursing home care, then the State expects to recoup some of the money spent through that person's estate.

In additon, there is a 5 year lookback period from the time of application to see if anything of value has been given away, traded, or sold for less than the item's value. If so, then there can be significant penalties--denial or delays of eligibility.....

 

[Indiana Filer]

They can use their assets to pay for their care rather than expecting the taxpayers to pay so that someone can inherit.

The time for estate planning is 5 to 7 years before nursing home care is needed. At this point, it's too late and you shouldn't be expecting to inherit anything.

 

[CSO286]

They can use their assets to pay for their care rather than expecting the taxpayers to pay so that someone can inherit.
The time for estate planning is 5 to 7 years before nursing home care is needed. At this point, it's too late and you shouldn't be expecting to inherit anything.

Very true.

 

[nextwife]

What is the name of your state (only U.S. law)? North Carolina

My aunt & uncle have no children, and all assets are jointly owned by both. My uncle recently was admitted to a nursing home. At the moment, Medicare and its supplement are paying for the first 100 days. They have no will, trust, etc. They own everything (nothing on loan)--land, house, vehicles, etc. They would like to leave their assets to when they die. They cannot afford nursing home costs, and are in the process of applying for Medicaid.

Is there a way for them to protect their assets so that once they die, the nursing home/state/medicaid, will not take their assets away from their heirs? Will an irrevocable trust help? I understand that Medicaid will put a lien on their house after they die, and will receive a portion from their estate. I also know that my aunt cannot give away anything or put the stuff in someone else's name. What can they do?

Their assets, first and foremost can and and should pay for their care and creditors. If anything remains, that is what can potentiially be inherited.

They also had the option when healthier of buying long term care insurance. WE cannot leave assets to others until we've paid off our debts.

 

[FlyingRon]

Their assets, first and foremost can and and should pay for their care and creditors. If anything remains, that is what can potentiially be inherited.

They also had the option when healthier of buying long term care insurance. WE cannot leave assets to others until we've paid off our debts.

Protecting INHERITANCE is something you can't do at this point.
What you can do is give some things preference over the state by doing things like prepaying funeral expenses etc... out of their assets.