Exempt assets from spend down... - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

GarySpicuzza · #1 (**permalink**) 02-06-2008, 02:14 PM

...with Long Term Care insurance. (LTCi)

There are 25 states with Long Term Care Partnership Programs.

This is significant legislation as a person can now LEGALLY exempt their assets from nursing home and Medicaid spend down by simply obtaining Long Term Care insurance.

Click HERE to read Florida Statute 409.9102.

Quote:

(b) Provide a mechanism to qualify for coverage of the costs of long-term care needs under Medicaid without first being required to substantially exhaust his or her assets, including a provision for the disregard of any assets in an amount equal to the insurance benefit payments that are made to or on behalf of an individual who is a beneficiary under the program.

(4) The Department of Children and Family Services, when determining eligibility for Medicaid long-term care services for an individual who is the beneficiary of an approved long-term care partnership program policy, shall reduce the total countable assets of the individual by an amount equal to the insurance benefit payments that are made to or on behalf of the individual.

States with Partnership Legislation:
Arkansas
Iowa
NorthDakota
Colorado
Maryland
Ohio
Florida
Massachusetts
Oklahoma
Georgia
Michigan
Pennsylvania
Hawaii
Missouri
Rhode Island
Idaho
Montana
Virginia
Illinois
Nebraska
Washington
New York
Indiana
Connecticut
California

GarySpicuzza · #2 (**permalink**) 03-10-2008, 10:50 AM

A bullet proof Financial Plan starts with a complete set of Estate Plans:

This would include a fully funded Revocable Trust, A-B Trust and/or Irrevocable Life Insurance Trust depending Federal Estate Tax exposure; a Pour Over Will; a Durable Power of Attorney; a Healthcare Surrogate and a Living Will.

Next one should consider when it's time to stop playing games in the Stock Market because at best (and only if you have a very sharp broker and are actively involved) are you going to gain more than about 7% per year on average while risking your retirerment savings to the whims of the market professionals.

Persons age 70 and above should keep in mind a 25% loss in one year will require a 47% gain the following year to just keep even with a safe investment that's just limping along at 5% per year.

Finally, Long Term Care insurance (LTCi) can be structured to totally EXEMPT your assets from nursing home and Medicaid spend down.

Dru · #3 (**permalink**) 03-26-2008, 08:40 AM

Considering "Power of Attorney", it is a good idea as you become older to hold POA for your spouse, and (s)he for you. This way if something should happen to either one of you (ie: stroke, heart attack, accident, etc.) you can immediately take care of business as needed. This is especially true of those using government programs like Medicare.