There is a five year look back period on Medicaid. Any deed transfers, movement of assets within 5 years prior to applying to Medicaid... falls under the look back rules. In addition there are rules about assets allowed under Medicaid, such as number of vehicles, cash and savings, etc. (This is also the age of the internet and everything is digital). Here is one article about the look back... https://www.payingforseniorcare.com/medicaid/look-back-period.html One of the problems with the expanded medicaid from ACA, is that many people signed up for medicaid without realizing that even if they get back on their feet and exit medicaid... their estate is still liable for costs incurred while on Medicaid. I realize people find this hard to believe, but a large portion of medicaid is paid by the state, nearly all of which have balanced budget amendments. So yes the state could go after the estate, which includes anything gifted (houses and cash) 5 years prior to joining medicaid. Now for the next part... once upon a time, at least 45 states had filial responsibility laws. For purposes of this discussion, children would be held liable for parent's indigent care and expenses. The term indigent has not been clarified for this purpose, but 29 states still have these laws on the books. How is this information so readily available? There was a lawsuit in Pennsylvania, just a few years back, where the nursing home sued the son and won. It was upheld in the State's Supreme Court. As a result, several states are now looking into their filial responsibility laws. I feel confident in saying it is not being done with a benevolent heart.
@Harry Havens This is a good point about paying back. My experience is with people at the end of life who won't be out making money again, so this isn't something I considered or was aware of. Thanks for the information. Now this issue about children being liable, I have never heard of. If people give away cash out of their account, I guess the government can know about that. But they won't know if the kids go into the house and take unknown items, jewelry or even money that has no record, prior to the elderly going into a nursing home. I do know that when I knew of families with "medical pending" they would get bills from pharmacy for example and the pharmacy would tell them not to pay those bills, when the medical is approved they will be paid back at that time. It's complicated and I'm wondering what I'll be dealing with in the future here.
https://www.paelderlaw.net/pennsylv...onsible-for-parents-unpaid-nursing-home-bill/ It varies by state. Further reading...http://triblive.com/news/valleynewsdispatch/9757033-74/law-nursing-support A summary from this page... http://www.obermayer.com/blog/a-look-at-filial-responsibility-in-pennsylvania-and-new-jersey/ Thus far, Kentucky has not gone down this road. However, it is not beyond the realm of possibility as the ACA had 600,000 enrollees into the expanded medicaid program. All was fine and dandy when the Federal government was paying 100% of the costs of those enrollees. However, the Federal government portion is now sliding downward to 90% by 2020. In Kentucky, that means an additional $600M per year in revenue will be needed to fund the program, or cuts to the budget of that amount. With teacher's in an uproar over their underfunded pension, etc., things will become very interesting... when the economy slips. When any government wants money, what was once taboo... suddenly becomes a reasonable approach.
I certainly didn't read word for word in the links above but it appears that there were assets still in place at the time of the nursing home resident's death which their children then took, or had taken within the allotted years. 5 years. This doesn't apply if the parent had absolutely no assets or they had been drained prior to the parent going on medical in the nursing home. At the time of the death, then there would have been no assets to go after. It doesn't look like they can go after the children's bank accounts, home or future earnings if none of their assets came from their parents.
I bought my LTC policy as part of a retirement package when I fully retired at age 56. The cost is partially subsidized by my former employer. Getting a policy at a younger age is the answer rather older with it's high cost
I don't have LTC insurance or any plans to try to hide/protect my assets. I will do what I can to remain independent for as long as possible. If I need end of life care I will self-pay as long as the money holds out, then I will have to depend on Medicaid and the kindness of strangers. My hope is to be able to sneak out quickly and quietly without a lot of fuss, we'll see.
@Beatrice Taylor Your no-nonsense approach makes good sense! Sort of what I think @Nancy Hart might do. If only we knew with reasonable confidence when it was coming....... I once told my nephew as we discussed terminal illness, if diagnosed, I would disappear up into the mountains, and be gone forever. He admonished me: no life insurance benefit for my wife under such circumstances. Now, no life insurance exists anyway, beyond S/S pittance death benefit. Taking one's own life, when but little is left of it, is a real tough option. Dr. Kevorkian, where are you? I believe Oregon, perhaps others, have enacted legalized death assistance. I don't care much for that either, bringing in strangers whose business belongs outside of my life's experience. But, I shouldn't pass harsh judgment, not knowing details. Beatrice, the best we can hope for is to die in our sleep! Frank
@Frank Sanoica I don't have life insurance either and it really does not seem logical to spend my life savings on a fight that I know I can't win. I look forward to the day that we all have the choice to go to our PCP for an end of life prescription that works the first time every time. For me just knowing that I had my pill or injector in my pocket would be enough to keep me going for another day.
I don't think there is a pill or injection that always works, @Beatrice Taylor. That is why there are 2 or more injections at executions. Potassium chloride might do it if you can hit a vein yourself, but it isn't going to be peaceful, as your heart would stop, but you would still be aware for a bit after that and it may not be painless. Pentobarbital can be injected almost any place on the body, and will put you to sleep quickly, but may not always be fatal. Suicide isn't a good thing anyway. I agree about life insurance. If you have a little money and no young dependents, life insurance doesn't make much sense. I guess if you have "burial insurance" it streamlines things for those left behind to handle your affairs.
@Don Alaska your points are well taken and that is why I would never resort to self-help for fear that I would only make things worse for myself and others. I prepaid the funeral a couple of years ago so all they need to do is call the undertaker and he will come to pick me up.
Consider A LTC POLICY (Long Term Care).Yes they are fairly expensive, but so is the cost of long term care. As a 84 year old that bought his LTC policy at retirement age 58 I know what I am talking about.My monthly living cost is in excess of $6,000 with 90% of that covered by insurance. I am happy that I am not living in some warehouse facility paid by some social program. I want my aging lifestyle at least on a par with what I enjoyed in my working life and active retirement.I was motivated to write and post this piece after doing some research on senior living. The senior market is huge and getting bigger and government will cram social programs down our throats to take care of we oldies
so you paid approximately $30,000 dollars over that period of time (25 years?) ...and you now pay approx $,5000 pm... for your accommodation in your 80's ...that's a great deal!!! It would be NIGH on impossible to get a decent Long term care Insurance in the Uk for such a small premium!!