Living Trust?

[Overlander]

So, my dad had surgery Monday, and is not doing well after. He is 82.

It just dawned on me that my father has zero debt, and owns 2 properties free and clear.
It also dawned on me that if he has to go into a home, his assets could be up for grabs.

Does anyone have experience of advice on whether a Living Trust, or some other avenue could protect his assets?

My mother passed away unexpectedly 2 years ago. I just redid my dads' will in January, making myself the executor. I completely forgot this other situation.

[Shirley]

So, my dad had surgery Monday, and is not doing well after. He is 82.

It just dawned on me that my father has zero debt, and owns 2 properties free and clear.
It also dawned on me that if he has to go into a home, his assets could be up for grabs.

Does anyone have experience of advice on whether a Living Trust, or some other avenue could protect his assets?

My mother passed away unexpectedly 2 years ago. I just redid my dads' will in January, making myself the executor. I completely forgot this other situation.

Sounds like you need to talk to an estate planning attorney. (jfish26 might know better.)

If this isn't what you were asking about, sorry.

Don't trust what I have to say, ask someone who knows. But, if I recall:

It used to be if you don't have long-term health insurance that covers a skilled nursing facility/nursing home when you run out of Medicare SNF/nursing home coverage*, to get the government to pay for it you had to qualify for Medicaid. And to "qualify" for Medicaid, you had to be poor, as in "spend down" your assets to nearly zero. To protect those assets, by putting them in a trust or giving them to your family, you had to do that 5 years prior to needing to "qualify" for Medicaid.


*Your costs with Original Medicare:

In each benefit period, you pay:

Days 1 - 20: $0 copayment (Note: If you're in a Medicare Advantage Plan, you may be charged copayments during the first 20 days.)
Days 21 - 100: A $200 copayment each day
After day 100: You pay all costs
Part A limits SNF coverage to 100 days in each benefit period.

(I believe a "benefit period" is 1 year.)

Let us know what you find out.

[KUTradition]

my folks are setting something up along these lines. i find out the deets next week and will try to remember to share if anything seems worthwhile

[Overlander]

my folks are setting something up along these lines. i find out the deets next week and will try to remember to share if anything seems worthwhile

Thanks!

[jfish26]

Yeah, you need to talk to an estate planning lawyer in the relevant state(s). Asset protection (in the case of long-term care needs) is worth spending on, particularly in/around the contours of the relevant state's/states' rules for eligibility for state assistance (or rules for asset spend-down).

My dad, like a lot of people, was going to find himself in the middle of the donut - too "rich" in assets to qualify for assistance (and to avoid a painful spend-down requirement), but not nearly actually rich with enough assets to manage through a long time in long-term care.

[TDub]

isn't that pretty much all of us that work for a living?

Too rich for assistance (looking at you medical insurance)

Too poor to actually realistically pay for shit and save enough to not end up working until we die?

Don't get sick or get hurt. Not round here.

[japhy]

My sisters and I set up a living trust for my mom several years ago. Best money we ever spent hiring a local attorney that specializes in that. They even made us aware of money my mom could receive as a benefit, because of my dad's service in the Navy which we were not aware of. They also set up POA for us. The POA came in handy when my mom refused to stop driving. I sold her car and that ended the dispute. A month later we are sitting in her doctor's office going over her cognitive test results.

Dr: I have to ask, are you still driving?

Mom: NO!, because HE took my CAR! (accusatory finger pointed at the bad guy, me)

Dr: Good, because there is no way you could safely drive a car given these test scores.

This was after an incident that consisted of my mom driving through Loose Park on the sidewalk, honking her horn at families walking on the sidewalk to clear the sidewalk so that she could get to the other side of the park to have lunch with my sister.

Mom: I didn't run over anyone!

Bottom line is there his a lot of stuff you won't foresee, but the professionals know how shit goes down and will help you through that.

[jhawks99]

Hoping for the best for your dad, OL.

[Overlander]

Hoping for the best for your dad, OL.

Thanks 99!

[Sparko]

Ditto OL. And follow the advice. They took everything not nailed down from my mom. Red states also like to try to strip assets from relatives. Because socialism is so much worse than institutional theft.

[ousdahl]

Just saw this.

Please let me also echo 99’s sentiments.