If I should ever need to go into a nursing home, I hear that they take everything that you own. My question is, How do I protect my Annuity from the nursing homes ?
After being stunned by the cost of Mom's NH, I did some research myself on what happens when I get to that age. Basically, you are asking how to protect some of your assets so you can leave some to your children? (that is why I was researching) If you go to a NH, you must pay out of your own pocket until your assets reach a certain minimum (can't remember) After that medicare kicks in.
You should consult with an estate planning attorney for specifics. I'm not at that point yet, but as far as I can determine, there is long term care insurance (expensive and won't pay for everything and I can't afford) or do an irrevocable trust because that is the only funds that are not counted in your assets. That is because once you put something in an irrevocable trust, someone else controls it, not you. And you cannot access that money yourself, and you cannot change your mind and revoke it at a later date. I'm not ready to do that!
The only way I know of is to purchase a good long term care plan that will pay tge costs for a period of time. Do not start giving your assets away. If you need Medicaid within five years of making a monetary gift or deeding your home to someone else for less than market value you will be penalized an amount equal to the gifts when you are Medicaid ineligible.
See an elder law attorney to discuss Medicaid planning, preparing all documentz you will need and what sort of care options there are available, the costs and what planning you need to take care of now.
If your monthly income without your annuity is enough to pay for a first-class nursing home, you are lucky! The nursing home can't take more than their customary fees. If you have some left over each month, hooray! They can't take it all just because you have more.
But nursing homes are pretty expensive, and they do expect to get paid. If you don't use your annuity, will you have enough from other sources to pay your way?
What would you be saving your annuity for? Isn't it for your needs?
Anyway, if you are thinking of trying to protect some of your income and still be eligible for Medicaid, you can consult an Elder Law Attorney. If that time is some way off, the rules that apply now might change by then. But that is the best you can do.
glorygirl51 - Oh dear, I do hope there is no way to protect your Annuity. Didn't you save the money in that Annuity for your retirement and a rainy day? Well, when you go into a nursing home it means you're totally retired and it's pouring outside. Time to use that money...cause you're simply not entitled to use my tax money to pay for your nursing home so you can save your Annuity. Sorry if you thought otherwise.
Don't you pay today for your own house & healthcare? Why on earth wouldn't you continue to do that when you need nursing home care? As I tax payer - before I foot the bill for you - you need to pay what you can with the assets you have. if you don't like it - don't go into the nursing home.
I'm not sure what you mean by "take everything that you own". When you need care, you have to pay for it, and if you have assets, those assets are used to pay for your care. Once your assets are used up, then you can apply for Medicaid which is a program for the destitute that pays for long term care. Were you thinking nursing home care should be free?
If you go to a NH, you must pay out of your own pocket until your assets reach a certain minimum (can't remember) After that medicare kicks in.
You should consult with an estate planning attorney for specifics. I'm not at that point yet, but as far as I can determine, there is long term care insurance (expensive and won't pay for everything and I can't afford) or do an irrevocable trust because that is the only funds that are not counted in your assets. That is because once you put something in an irrevocable trust, someone else controls it, not you. And you cannot access that money yourself, and you cannot change your mind and revoke it at a later date. I'm not ready to do that!
See an elder law attorney to discuss Medicaid planning, preparing all documentz you will need and what sort of care options there are available, the costs and what planning you need to take care of now.
But nursing homes are pretty expensive, and they do expect to get paid. If you don't use your annuity, will you have enough from other sources to pay your way?
What would you be saving your annuity for? Isn't it for your needs?
Anyway, if you are thinking of trying to protect some of your income and still be eligible for Medicaid, you can consult an Elder Law Attorney. If that time is some way off, the rules that apply now might change by then. But that is the best you can do.
Angel