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Asset Protection for the Caregiver and Elderly Parents

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Gail was surprised, but also relieved, when her father, then age 64, told her that as part of his legal and financial planning, he had put in place a durable power of attorney and advance care directives. Now at 78, her father suffers from the early stages of Alzheimer’s disease. Having the foresight to make arrangements years ago is saving the family both emotional and financial distress.

It’s a scenario that Certified Financial Planner Larry Botzman, CRPC and board member of the Financial Planners of America, sees often. Sadly, many families are not as prepared as Gail’s.

“What’s at risk is the adult children’s inheritance,” Botzman says. “If the parents’ life savings goes toward paying for a nursing home, there is nothing left to leave the children – which can be heartbreaking for the parents.”

The lesson here for caregivers is to start planning now for your own future care. Research by the University of Kentucky’s College of Human Environmental Services found that only 40 percent of people thought a lot about retirement. A full 77 percent said they felt they were saving too little and poorly prepared for their own retirement.

The study also suggests the caregiving experience brings heightened awareness about the need of one’s own retirement and is a time in which many caregivers need exposure to and guidance toward retirement planning activities and information.

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Comments (1 to 5 of 15)

Westy2100 said
Apr 1, 2008

One of the things that I disagree with is that so many people are concerned about leaving an inheritance for their children and do not want to pay for a nursing home. I think this is very wrong. The money that they earned and saved was for their older age and to being taken for care. Many people then end up on medicare (welfare if you will) and we end up paying more in for their care. I am very frustrated because my brother's children have taken over almost all of his $500,000 estate. He will need to go into a nursing home as they will not want to care for him much longer. Two of his children went to an attorney and told them what they wanted and the attorney wrote up everything and did not talk to my brother. He already had Alzheimers and had lost his wife a few months prior in an accident when they came to him asking for things. He had NO ONE to talk to him and did not fully understand what was happening. He signed the papers when asked if he understood and he said yes. Any one, particularly the attorney should have known that he did not understand. Not much I can do about it at this point as he will be going to a veterans home that is 50 miles away and I won't be able to visit him muchand they only go back one year to take things. SO they made sure they got things done as soon as they could.think what makes it harder for me is that I am a retired social and familiar with the things that happen. Thanks for a chance to unload my frustration.

BryanWisda said
Apr 3, 2008

Westy2100,

Did your brother's children utilize the attorney to "spend down" his net worth to qualify your brother for Medicaid? Was their intent to get the money NOW or was it the children's intent to avoid having to waste the $500,000 on a nursing home?

Bryan Wisda

195Austin said
Sep 15, 2008

Isn't there a look back period so when a person is placed a 5-7 yr. time period is checked to prevent this from happening- would it not be great if they had to return the money they tricked him out of having for his needs.

Cat said
Sep 15, 2008

Its funny how we allow these "Trust Advisors" to market to the seniors who are so gullible and do move all of their assest into a trust to qualify for Medi-caid - - They learn the sad truth after the fact. I am sick to death of hearing people complain about "wasting" inheritance on care - - the truth is that it is not YOUR money - it is the senior who earned it. On a professional level I have seen people drive up in new mercedes - very excited that their parents Medi-caid pending status was approved. That is why there is now an elder abuse task force that focuses on financial and fiduciary abuse. And why look back periods and regulations are being changed.

On a personal level I have seen how ugly people can become when money enters the mix - you never know, people can surprise you. The whole concept invented by created "trust attorneys' is ripe for abuse by family members and others who do not have the seniors best interests at heart. "Spending down" net worth was designed for a different purpose than is being used today.

All of those who are truly caring for a relative - Kudos to you. All of those who can't wait to get their hands on the money - Boo to you. All of us taxpayers foot the bill for Medi-caid programs and will probably not have the same access to programs that were designed for the truly needy.

Rosie03 said
Oct 9, 2008

A lot of us don't want to lose the place where we were raised and there's nothing wrong with that. What amazes me, is the government can issue a social security check for around 900.00 and say LIVE ON IT. But if you need a nursing home, all of a sudden, it's 4,000-8.000 a month. Yes, medi care pays for long term care and yes they should be paid. But why don't you ask our government why they will pay for illegal aliens health care and not expect a THING in return???? I do believe Americans should come first and if our government weren't giving all our money away to other entities, then maybe it'd be different. I want my inheritance, such as it is and feel I'm as entitled to it as an illegal alien is to what they get. And even legal aliens, people sponsored by our government to get education, furnished homes, cars. The money SPENT DOWN is to be spent down on the elderly person who needs the care. Everyone isn't out to cheat Medicaid, but it seems our government cheats us, as we've just seen with Wall Street. That's my take on it.

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Aging Parents and Elder Care Expert

GailSamaha

Gail M. Samaha

Elder Care Planning Consultant, Speaker and Website Creator
Massachusetts

Gail M. Samaha is the founder of GMS Associates. She is a successful management consultant who from her own personal experience along with her background as a hospice volunteer and 30 years of business management , created an elder care planning division for elders and caregivers and trusted advisors.

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