Protect Assets from Nursing Home Costs:
Plan to reduce nursing home cost by
giving as taxable gift or private annuity
Protecting assets from nursing home costs is the latest challenge for seniors where government is demanding an uncapped spent down of their asset if one of them falls victim to a nursing home. Canada and some other countries offer this benefit as part of their rights, since they contributed to their Medicaid system during their working years.
The United States apparently, is going the route of demanding that seniors cover their own expenses, eve if they carry private plans. What hurts the most is that there's no cap on what has to be the spent down under the new provisions mandating that all states adopt the new federal guidelines on nursing home eligibility or lose their federal funding.
The evidence is clear, the baby boomers generation cannot expect government to cover their medical and nursing home costs. They have begun with existing seniors, who before they can even qualify for the nursing home cannot move their assets (asset protection) without the 5 year look-back, it was 3 years.
You don't need a fortune teller to point out, that if one of you gets sick, your hard earned assets will vaporize-right before your very eyes. Even if you planned carefully for your retirement, a catastrophic medical event will leave both of you devastated, one sick one without any resources.
Planning for your reducing your nursing home costs has to be done early and definitively 5 years before you plan to get sick. Any string attached to your planning will void your plan to protect your assets from the nursing home costs. Your plan must be irrevocable. You cannot be the Indian giver, or the kid with the basket ball making-up the rules as he sees fit whereby if he doesn't like the way the game is progressing takes back the basket ball and goes home to his mommy.
Any asset transferred from you to something else, some legal structure has to be at the "fair market value" the price paid by a willing buyer and a willing seller neither under a compulsion to buy or sell, each acting in their best interest. If it's a taxable gift, it has to be justified with a legitimate appraisal and taxes have to be paid on the gift by the transferor, the receiver of the gift is always tax-free. If it's a sale, the cash has to be exchanged. There are methods by which no cash need to change hands and still be a legal exchange. It's called the "private annuity."
A private annuity is nothing more than a contract between the guy with the money and a custodian whereby in exchange for the cash the custodian promises to pay over the transferor's lifetime a certain amount, thus limiting the amount that can be used to defray the cost of the nursing home.
To learn more about irrevocable trusts and senior elder care visit:
- Medicaid: elder care
- Asset Protection from Medicaid
- Hide My Assets Medicaid
- Medicaid Asset Protection
- Nursing Home Spend-down Program
- Medicaid Estate Planning
Rocco Beatrice, CPA, MST, MBA, Managing Director, Estate Street Partners, LLC.
Mr. Beatrice is an asset protection, award-winning trust and estate planning expert.
| If you are seeking for an Alternative, Uncompromising & Exclusive Estate Planning & Wealth Preservation Chartered Roadmap to Your Accelerated Financial Success then call us now for a completely FREE, no obligation, no sales pressure, 100% total & complete client privacy consultation. Call us now at 508-429-0011! |
|---|
Estate Street Partners, LLC
Uncompromising, Alternative and Exclusive Estate Planning & Wealth Management for an Accelerated Chartered Roadmap to Financial Success
71 Commercial Street #150, Boston, MA 02109
toll-free: 888-93-ULTRA (888-938-5872)
tel: +1.508.429.0011 fax: +1.508.429.3034
Only by appointment: 2235 E. Flamingo Road, Suite 201-G, Las Vegas NV 89119
toll-free: 888-93ULTRA (888-938-5872)
tel: 702.615.7616 fax: 702.796.6694
| Del.icio.us | Google | Furl | Yahoo MyWeb
Netscape | reddit | Spurl | Connotea | Squidoo
Technorati | ma.gnolia | Earthlink.net | Backflip
RawSugar | Shadows | Simpy | StumbleUpon
Privacy Policy | Disclaimer | About Us | Contact Us | Sitemap | 
