Author Topic: How to plan for long term care?  (Read 2100 times)

Rural

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How to plan for long term care?
« on: March 02, 2013, 06:33:01 AM »
The possibility of needing nursing home or similar care down the road is the piece I don't see how to fit into the ER picture. We've built ourselves a home designed for aging in place, but what happens if that isn't possible?

I know this is one of the least predictable of our variables, but as someone without children, I feel it should be part of our plans if at all possible. Costs are through the roof, much higher than the annual budget we have in mind.  How are others factoring it in?

rudged

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Re: How to plan for long term care?
« Reply #1 on: March 29, 2018, 09:45:35 AM »
Have you considered long term care insurance? My understanding is that only a third of people actually go into a nursing home before they die. A lot also depends upon the specific plan - you have to look at the fine print to determine whether or not the plan would actually kick in when you need it. I spoke with my doctor and he thought I would be wiser to simply self insure.

NV Teacher

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Re: How to plan for long term care?
« Reply #2 on: March 30, 2018, 09:48:12 AM »
I bought a long term care policy.  Iím single with no children and while I have a bunch of nieces and nephews I want something in place should the need arise.

des999

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Re: How to plan for long term care?
« Reply #3 on: March 30, 2018, 10:30:01 AM »
my parents are at the age where this question comes up, and I don't have a good answer.  I'm thinking it's too late for long term care ins (too expensive at their ages).  They don't have a fortune, but enough we don't want them to lose (house plus IRA).  I've heard they can come after your house and IRAs to cover costs if they end up in a nursing home, but I'm not sure of the details.  Maybe they need to transfer things now into my name?

Interested to hear other thoughts on this subject. 

wenchsenior

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Re: How to plan for long term care?
« Reply #4 on: March 30, 2018, 11:27:53 AM »
my parents are at the age where this question comes up, and I don't have a good answer.  I'm thinking it's too late for long term care ins (too expensive at their ages).  They don't have a fortune, but enough we don't want them to lose (house plus IRA).  I've heard they can come after your house and IRAs to cover costs if they end up in a nursing home, but I'm not sure of the details.  Maybe they need to transfer things now into my name?

Interested to hear other thoughts on this subject.

Generally speaking (it depends a bit on the state where you live), elderly needing nursing home care will be required to pay out of pocket until their money runs out, at which point Medicaid hypothetically pays.  Often one spouse needs care prior to the other.  In that case, the state allows the remaining spouse to remain in the house and keep a modest amount of assets only.  At the remaining spouses death, the house reverts to the state to sell.

You can transfer assets to protect them, but there is a claw back period (I think currently 5 years).  So e.g., if you transferred the parents assets to you to qualify them for Medicaid nursing home requirements, this would have to be done at least 5 years prior to them needing Medicaid, or the state will refuse to qualify them until an amount of time passes that is cost-equivalent to the amount of assets that were transferred. 

In other words, if you transfer assets worth 100K, and average nursing home cost in your state is 20K/year, Medicaid would not kick in for 5 years after the elderly person was deemed eligible.  Making a mistake in this can be very dangerous, as you can see.   

In some states, you can transfer  title and protect the house and still get  Medicaid coverage, but usually that requires the person receiving title to be living in the house caring for the soon to be Medicaid recipient for some period of time prior to applying for Medicaid.

It's very complicated, and often requires consulting an elder care estate planning attorney who has thorough knowledge of the particulars of laws in your state.

Mr. Green

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Re: How to plan for long term care?
« Reply #5 on: March 30, 2018, 12:14:52 PM »
I wouldn't consider LTC insurance until the market stabilizes. Too many stories of people paying in for years and then premiums rising to the point they can't keep paying and all that premium money was just thrown away. We'll just let the stash keep growing and whatever is extra witll be our LTC "insurance."

blinx7

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Re: How to plan for long term care?
« Reply #6 on: March 30, 2018, 12:42:11 PM »

Save up a lot of money.  If the money runs out, medicare / medicaid.  If that runs out, family / friends / church.  If that runs out then I guess I would die. 

(I am not being glib.  I don't like this thought.  But I'll die eventually no matter what.)

Moustachienne

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Re: How to plan for long term care?
« Reply #7 on: March 30, 2018, 06:17:17 PM »
Going through a really stressful time with a senior who has good savings plus qualifies for Canadian home or care home support, that is, could go somewhat luxurious or adequate bare bones and everything in between.  But guess what?  Senior absolutely refuses to admit that any care is needed.  Family has to step in and force some unhappy care.

This is what worries me the most - the inability to make good decisions when needed.  And yes, we have Rep Agreement and Enduring POA.  But the senior's unhappiness is profound.

We don't have kids so will set up all necessary agreements and representations but will we be able to be our own best friends?

Sorry for the downer post!