Can you shelter income when paying for nursing home or long term care?

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Since a nursing home can drain financial resources quickly, I am looking for ways to save or hide or exempt income from being used up.

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This is what people struggle for, work 10 hour days for, leave their children with strangers in day care for - they spend their entire adult lives working and saving - for the above to happen to them. Inheritance taxes, nursing home fees, high costs of pain medications - I am baffled why there are not more cases of "Thelma & Louise" senior couples, because that to me is a far more respectable way to go!
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cmagnum, that is one reason I am trying to get my parents to have a second meeting with the Elder Care attorney so he can do a Trust..... Dad has a lot of homework to do but he keeps stalling, which is so frustrating. My sig other and I have already completed and signed our own Trusts, etc.

I wonder if Congress will pass any type of tax hike on inheritances... nothing like being taxed twice for money earned once :P
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Well, freqflyer, unless your parents make you co owner with right of survivorship of all their accounts much of their money that you inherit will go to inheritance taxes the way things look right now.
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cmagnum, you are so right about that.

I wish my parents wouldn't continue to scrimp and save just to hand it over to me... the stress they are putting me through just because that wallet is bolted shut and they don't want to hire people to help them.... [sigh].
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Looking for a big inheritance down in the distant future from one's parents to easily leads to not making ones own preparation for retirement. If we work and prepare for our own retirement, then anything that we inherit from our parents is icing on the cake.
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swilkes3, why should any child get anything, except items of sentimental value? We shouldn't go through life thinking we will get all the money that our parents made/saved, that money should be used to take care of them.... the parents earned it.
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I, as a taxpayer, don't want to have to pay for someone's care so their kids can get an inheritance.
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Well, that is a reality many of us are facing both as parents and as adult children. In my case, my mother was wise is buying long term care insurance and it protected much of her money in various accounts and investments for little of it was used during the 4 years she was in the nursing home before she died at age 82. That ended up leaving me as her only child a nice inheritance since she had made me co-owner of all of her personal accounts and the investments. A great majority of that money was money she inherited from her mother back in 1996.

My dad on the other hand spent much more of his money in retirement than my mother did. He is using his long term care policy, but his does not last for as many years as the one my mother had bought for herself. It is very likely that unless he dies within a short time period, that all of the money he has outlined in his will to go to me and my step-siblings and my two boys will be spent and never get inherited. Dad is 89 and no one in our family has ever lived that long. He has Alzheimer's and Parkinson's and is declining quickly. Since the death of his wife last May, he has basically given up and prays nightly for her to come get him.

Right now at 57, my own retirement and investment money plus the investments from my mother minus what my wife and I owe our house puts my retirement net worth right over 1 million. However, this is the money that my wife who is 60 and does not have much retirement at all, will have to live our retirement years on. So, we don't expect that we will be able to leave our two boys much at all. At the same time though, my wife stands to inherit a great sum of money from her mother who is 86 and in an assisted living facility. Her mom's remaining money plus the house that will need to be sold will be divided between her and her twin sister in some sort of trust fund. So, we don't really know how much money that will be but the estate is incredibly large and her mother is extremely frugal to a fault.
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Thank you. I actually have long term care insurance for myself. My older brother and his wife, however, are worried about using everything they have for a potential upcoming nursing home possibility, and then having nothing left for their children.
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What you are trying to do is illegal and unethical. Why should taxpayers have to pay for your care if you have funds? Medicaid is for the poor. There is a 5 year lookback for any money transfers and they WILL find it.

Angel #2
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