chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
We have a split plan for LTC funding. Part LTCi that would cover the front end (for so many years) and part nest egg (to serve as a backstop if the LTCi amount is exceeded).
The ongoing discussions about LTC planning got me wondering... What if our Plan A fails? 30+ years is a long time. What would it mean if (for some unexpected reason) the resources for plan A were not available or were impaired severly in 10 years or 20 years and then an LTC event actually happened. Insurance companies do fail and what would it mean if we took a big hit on our assets. What would that mean to DW and I and specifically to the surviving spouse.
I guess the FIRE planning never stops.
I am reading a book: How to Protect Your Family's Assets from Devastating Nursing Home Costs (Medicaid Secrets) by K. Gabriel Heiser. I am half way through it.
What I found out so far.. those basic rules we read about in articles and even at state medicaid sites (those summaries)... as expected, they present only the most basic information.
I recommend reading the book. You can probably get it at your library. Medicaid may be a safety net... but it can also be a net that can be a bit of a trap... especially for the surviving spouse! The rules are very convoluted. I cannot adequately describe it so I will not even try.
Added: My recommendation about the book is for educational purposes. I am not recommending that anyone follow it. Even the author cautions against it. He clearly states that people should seek help and guidance from qualified professionals.
It reinforced the need to have a real plan in place. We do have a plan for funding... but I need to review it and make sure there are no holes in it (i.e., assumptions). I intend to do a little more study on it. Hopefully I can be objective (and critical) about our current plan.
No plan is going to be perfect and that is where Medicaid LTC can help.
The thing that bothers me about the Medicaid rules. In an effort to keep people from transferring assets to their kid and then getting Medicaid to pay for LTC... They leave the surviving spouse in pretty poor shape (IMO). The spouse (if done properly) can keep the home (assuming it does not exceed the cap). But other than that they are not left with much income or assets. Plus there are so many ways to mess up and wind up penalized or having to go to a hearing to deal with it or even court... It is really a convoluted mess.
The ongoing discussions about LTC planning got me wondering... What if our Plan A fails? 30+ years is a long time. What would it mean if (for some unexpected reason) the resources for plan A were not available or were impaired severly in 10 years or 20 years and then an LTC event actually happened. Insurance companies do fail and what would it mean if we took a big hit on our assets. What would that mean to DW and I and specifically to the surviving spouse.
I guess the FIRE planning never stops.
I am reading a book: How to Protect Your Family's Assets from Devastating Nursing Home Costs (Medicaid Secrets) by K. Gabriel Heiser. I am half way through it.
What I found out so far.. those basic rules we read about in articles and even at state medicaid sites (those summaries)... as expected, they present only the most basic information.
I recommend reading the book. You can probably get it at your library. Medicaid may be a safety net... but it can also be a net that can be a bit of a trap... especially for the surviving spouse! The rules are very convoluted. I cannot adequately describe it so I will not even try.
Added: My recommendation about the book is for educational purposes. I am not recommending that anyone follow it. Even the author cautions against it. He clearly states that people should seek help and guidance from qualified professionals.
It reinforced the need to have a real plan in place. We do have a plan for funding... but I need to review it and make sure there are no holes in it (i.e., assumptions). I intend to do a little more study on it. Hopefully I can be objective (and critical) about our current plan.
No plan is going to be perfect and that is where Medicaid LTC can help.
The thing that bothers me about the Medicaid rules. In an effort to keep people from transferring assets to their kid and then getting Medicaid to pay for LTC... They leave the surviving spouse in pretty poor shape (IMO). The spouse (if done properly) can keep the home (assuming it does not exceed the cap). But other than that they are not left with much income or assets. Plus there are so many ways to mess up and wind up penalized or having to go to a hearing to deal with it or even court... It is really a convoluted mess.
Last edited: