Protecting Assets

[garrynky]

I'm 57 and my wife is 55. We are getting close to retiring, maybe another two years or maybe sooner than I expect. We are both still employed with good health benefits.

We had a visit at the doctors office this afternoon. Turns out that my wife has some lesions on her brain that my cause some problems. This all happened out of the blue, all the test aren't in so it could be something much less serious. Anyway this started me to really thing about how to protect assets.

My Mother is in a nursing home. About five years ago, we put her house in my name. Fortunately, the state picks up most of her tab and I will sell her house to pay the other expenses.

In my former job I took the cash balance payout and my wife will also. So I'm wondering, if something catastrophic happened, like my wife faced with a situation where she required required intensive long term medical care (or me)...what is the best hedge?

Thanks in advance for your replies.
Garry

 

[GTM]

Long term care insurance would take care of nursing home expenses assuming you take it for the maximum payment per day.

Nursing homes can goes over 100k per year in some parts of the country.

 

[Martha]

Is your question how to invest or is your question how to protect money from creditors? If you are looking a medicaid planning, it is a difficult, complicated and oft changing area. I recommend professional advice.

 

[Mr._johngalt]

Is your question how to invest or is your question how to protect money from creditors?  If you are looking a medicaid planning, it is a difficult, complicated and oft changing area.  I recommend professional advice.

I have looked into this. "complicated" is an understatement.

I often act as my own attorney. Not for this. I am resigned to paying
for legal work, as soon as I figure out what questions to ask

JG

 

[garrynky]

My question relates to creditors. I was picturing a worst case senario where one of us were faced with a serious illness and had to have assisted living or placed in a nursing home. In this senario, when the insurance runs out before the state picks up the tab, I'm forced to drain the 401k and sell assets.

Is there a way to set up a trust, or any other method to gaurd against this?

 

[kat]

I agree with getting professional advice, and make absolutely certain it is the professional's main work. The rules change often.

 

[Brat]

This is a bit off subject, but have a long talk with a psy about the type of changes that sometimes happen after brain surgery.  Neuro surgeons & neurologists are an optomistic bunch.

Also, she may not bounce back right after surgery.  No one recouperates in the hospital today, if you can't care for her at home she may need to recover in a skilled nursing setting for a month or two.  The both of you should visit the ones in your community so that together you can make a choice.

Been there, done that, with an aging father.

 

[Mountain_Mike]

File a Homestead Exemption on your house. Some or all of the value of your house will be absolutely prodected. The amount of the protection will depend upon where you live.

 

[JPatrick]

I agree with getting professional advice, and make absolutely certain it is the professional's main work.  The rules change often.

Getting a pro's advice is important.  One of the problems in this area of the law is that many of the "pros" can't agree on what is the correct way to structure.
Shop for your pro carefully and from what I've seen, I'd stay away from the "WHAT EVERY RETIREE NEEDS TO KNOW" Seminars.