How to dispose off assets to avaoid paying for Medicare & getting SSI ?

[sandrajean]

What is the name of your state (only U.S. law)? - California

Situation - My mon is US Citzen & my dad is permanent resident. They have 150K combined, in their joint bank account. Other than this they own a townhome worth 350K. No other assets and no income. They do get SSI but like $600 combined. They pay individual premiums for medicare & for supplemental insurance separately. So infact every month they use $1500 for this & expenses (utility bills + property taxes). They file joint taxes. Also if they don't have any income, while doing taxes year end can they still get get back whatever property taxes they pay

Qs.1 They need to get rid of paying above premiums and get more SSI. I think it can only happen if they reduce their bank balance to 2-3K. I think they can do by disposing their bank balance thru gifting & it will only incur a waiting period for medical (though their medicare premium will become zero & more SSI too,as i think there is no waiting period for medicare/SSI)

Qs.2 I think they can gift all in one shot to children & still apart from waiting period, no other issues will be there. Or they still need to do these transaction with certain gap & in chunks

Qs.3 They don't need any long term care right now but I think they can still apply for medical. Even if their application gets rejected still they will only incur waiting period after which they will automatically get medical. Or may be transfer all assets to one person so that the other one can file & get medical

Qs.4 Can reverse mortgage help them in getting money ?. They have issues with current townhome & want to sell it. Can they get new property on reverse mortgage loan ?. But then I think they will have addition money coming into their bank account

Thanks
Sandra

 

[ajkroy]

What is the name of your state (only U.S. law)? - California

Situation - My mon is US Citzen & my dad is permanent resident. They have 150K combined, in their joint bank account. Other than this they own a townhome worth 350K. No other assets and no income. They do get SSI but like $600 combined. They pay individual premiums for medicare & for supplemental insurance separately. So infact every month they use $1500 for this & expenses (utility bills + property taxes). They file joint taxes. Also if they don't have any income, while doing taxes year end can they still get get back whatever property taxes they pay

Qs.1 They need to get rid of paying above premiums and get more SSI. I think it can only happen if they reduce their bank balance to 2-3K. I think they can do by disposing their bank balance thru gifting & it will only incur a waiting period for medical (though their medicare premium will become zero & more SSI too,as i think there is no waiting period for medicare/SSI)

Qs.2 I think they can gift all in one shot to children & still apart from waiting period, no other issues will be there. Or they still need to do these transaction with certain gap & in chunks

Qs.3 They don't need any long term care right now but I think they can still apply for medical. Even if their application gets rejected still they will only incur waiting period after which they will automatically get medical. Or may be transfer all assets to one person so that the other one can file & get medical

Qs.4 Can reverse mortgage help them in getting money ?. They have issues with current townhome & want to sell it. Can they get new property on reverse mortgage loan ?. But then I think they will have addition money coming into their bank account

Thanks
Sandra

How old are your parents? Qs. 3 doesn't make sense, because if they are paying premiums for Medicare, they are receiving medical insurance. If they are eligible, they receive it. And you seem to be confused about a lot. Medicare Part A (Hospitalization insurance) does not have a premium; it has been taken out of every paycheck for the entirety of your parents' work history. Medicare Part B (Outpatient insurance) has a premium that is deducted from Social Security. As far as I know, no one is immune from Part B premiums, although I am aware that there could be extraordinary circumstances for some people of which I am not aware. Certainly not just because the people don't want to pay, however.

Are you thinking of Medicaid? I'm sorry, but why should taxpayers pay for your parents if they have money to pay for themselves? You are actually here asking how to legally disburse assets (to you) so that your parents, who are not ill or infirm, can milk welfare??

 

[Proserpina]

You are actually here asking how to legally disburse assets (to you) so that your parents, who are not ill or infirm, can milk welfare??

Certain seems that way.

 

[sandyclaus]

I don't understand why the parents don't just take out a reverse mortgage on the property they have now have, and use that money and the money in their bank account to pay for their Medicare premiums. $500k can go a very long way to cover those.

Besides, from what I was able to research, revisions to the law in 2006 requiires Medicaid applicants to provide "full information . . . concerning any transaction involving the transfer or disposal of assets during the previous period of 60 months, if the transaction exceeded $100,000, without regard to whether the transfer or disposal was for fair market value." That would be 60 months from the DISPOSAL date, so if they have that kind of money now, it would seem suspect for them to transfer it all off in the manner you're suggesting instead of actually using it to cover those costs - especially when they clearly have the money to do so.

 

[OHRoadwarrior]

I don't understand how the parents are getting SSI anyway, unless they committing fraud. They are not allowed to have more than $3000 in assets.

 

[ajkroy]

I think the OP is all kinds of confused. Either that or just greedy and selfish.

 

[sandyclaus]

I ALSO wonder how, if neither parent has any income, they are able to pay for the utilities and property taxes.

I smell all kinds of fraud going on in this, and it sounds like the daughter is trying to help them continue to perpetrate it further.

 

[cbg]

On the other forum where this poster asked this question, I told her that her parents have more assets than I do, and she has some nerve suggesting that I should be paying for her parents' support.

I say so again, here. And will say it on every other board where she posts this and I see it.

 

[sandrajean]

My mistake for the typo. Their bank balance is 15K, not 150K

Can someone revisit the scenarios now and suggest me ?

Thanks

 

[Proserpina]

Can someone revisit the scenarios now and suggest me ?

Thanks

I suggest you stop trying to help your family commit fraud.

You're welcome.

 

[cbg]

Even at 15K, my answer has not changed.

 

[LdiJ]

Even at 15K, my answer has not changed.

Accept that we really do need to know how old her parents are, because that could change our answers significantly.

 

[Mass_Shyster]

For a long time, the kind of estate planning you are looking for was considered unethical by the legal community and lawyers were prohibited to assist people in transferring assets and make the government pick up the tab for the parents expenses while the children were enjoying the benefits of those assets.

This has changed, and estate planners will now help you legally hide your money from the government. The reason they do this is because they are getting paid to do so.

I don't think you'll get the same cooperation from volunteers.

 

[OHRoadwarrior]

Stevef what you are missing is that they are actively committing fraud now. Regardless of how this is structured, the action will be intentionally fraudulent. A legal estate transfer does not take place in an SSI scenario. The lawyer would be assisting in a fraudulent activity. This is not a straight forward Medicaid scenario.

 

[cbg]

Accept that we really do need to know how old her parents are, because that could change our answers significantly.

I don't care how old they are, I don't see why I should pay for them when they have more assets than I do. I'm not going to help them commit fraud so that the taxpayers will pay for them when they have the means to do so themselves.