Preserving Estate-- Medicaid Planning

[Georgia Man 321]

What is the name of your state? Georgia

My widowed mother is 78 and suffers from Parkinson's Disease/Lewy Body. She currently lives with us and I have some questions as we move forward toward needing additional care in the future. She is considering assisted living for now but may eventually need nursing home care.

• Resident of TN-- Living with me in GA
• Has a home in TN worth approximately $300,000-- Home has a life estate deed with me as the heir
• Has approximately $57,000 in liquid assets
• Earns approximately $26,000/yr income
• Life insurance of 5K
• Prepaid Burial of 10K

We are interested in preserving wealth and passing it on to the heirs. We know she would need to pay for assisted living, out of pocket. The concern is when nursing home care is needed.

• We know Medicaid will pay for care after personal funds are spent down.
• We know that there is a home exemption to be eligible for Medicaid if you plan to return to home. This doesn't apply if you become a GA resident, apply for Medicaid, yet have a TN home. We also know there is an Estate Recovery which will recover funds spend through Medicaid.

Questions

1. Should we sale the property in TN and purchase a new property in Georgia to become her primary home. (Most likely she wouldn't be staying here by herself much but for all intent and purposes, it would be her residence.) I assume no one would need to know that she is not residing here all the time. Would this shield the home from being taken after death? Or would Estate Recovery take all of it except $25,000 (GA rules) regardless.

2. If we did purchase a GA home for her, would putting in a life estate protect it after her death assumes she has used Medicaid for the nursing home and it was after 60 months?

3. Should we sale the home and simply give the funds to me, hoping she won't need nursing home care for 60 months? Though if she did need care, we would be ineligible for Medicaid and would need to pay for care out of pocket based on how much was given away. Paying full price without Medicaid contracted rates would be higher.

4. Would a trust help? Probably 60 month rule as well.

5. Could we buy an automobile to drive her around in? (she doesn't drive) Put in her name but my wife and I would be the insured drivers.

What are your suggestions on preserving mom and dad's estate?

 

[quincy]

What is the name of your state? Georgia

My widowed mother is 78 and suffers from Parkinson's Disease/Lewy Body. She currently lives with us and I have some questions as we move forward toward needing additional care in the future. She is considering assisted living for now but may eventually need nursing home care.

• Resident of TN-- Living with me in GA
• Has a home in TN worth approximately $300,000-- Home has a life estate deed with me as the heir
• Has approximately $57,000 in liquid assets
• Earns approximately $26,000/yr income
• Life insurance of 5K
• Prepaid Burial of 10K

We are interested in preserving wealth and passing it on to the heirs. We know she would need to pay for assisted living, out of pocket. The concern is when nursing home care is needed.

• We know Medicaid will pay for care after personal funds are spent down.
• We know that there is a home exemption to be eligible for Medicaid if you plan to return to home. This doesn't apply if you become a GA resident, apply for Medicaid, yet have a TN home. We also know there is an Estate Recovery which will recover funds spend through Medicaid.

Questions

1. Should we sale the property in TN and purchase a new property in Georgia to become her primary home. (Most likely she wouldn't be staying here by herself much but for all intent and purposes, it would be her residence.) I assume no one would need to know that she is not residing here all the time. Would this shield the home from being taken after death? Or would Estate Recovery take all of it except $25,000 (GA rules) regardless.

2. If we did purchase a GA home for her, would putting in a life estate protect it after her death assumes she has used Medicaid for the nursing home and it was after 60 months?

3. Should we sale the home and simply give the funds to me, hoping she won't need nursing home care for 60 months? Though if she did need care, we would be ineligible for Medicaid and would need to pay for care out of pocket based on how much was given away. Paying full price without Medicaid contracted rates would be higher.

4. Would a trust help? Probably 60 month rule as well.

5. Could we buy an automobile to drive her around in? (she doesn't drive) Put in her name but my wife and I would be the insured drivers.

What are your suggestions on preserving mom and dad's estate?

Your mom should make an appointment with an elder care attorney well-versed in estate planning (or an estate planning attorney well-versed in elder care).

I would not count on Medicaid. It is currently a target for elimination by the Trump administration.

 

[adjusterjack]

We are interested in preserving wealth and passing it on to the heirs.

And stiffing the taxpayer in the process.

We know Medicaid will pay for care after personal funds are spent down.

Sure. If Mom manages to last longer than the look-back period Medicaid will pay to warehouse her in the cheapest rathole available. A more dignified, better quality place will cost $10,000 and up per month by then.

Good luck with your scheme.

 

[zddoodah]

We are interested in preserving wealth and passing it on to the heirs.

Who are "we"? Are "we" more "interested in preserving wealth and passing it on to the heirs" or in quality and comfortable care for your mother while she is alive? The quality of care that medicare pays for is pretty low.

As for your questions, if your mother is more concerned with her heirs receiving assets than she is with the quality of her care, then she ought to consult with and retain the services of an estate planning attorney (she might want to do that anyway).