Sep 12, 2022, 3:47 AM
Post #1 of 6
My parents are both in their early 70s, and my father has an early stage of dementia. They met with an advocate for the care of the elderly, who, of course, proposed to create an irrevocable trust to reduce the assets accounted for under the Medicaid program, for the possibility of further long-term stay in a long-term care facility (LTC) for him in 5-10 years.
I have read a lot of topics on this topic on the forum, and I have not seen a similar situation described.
The goal would be to prevent the depletion of property, leaving my mother without the necessary resources to cover her future expenses and medical needs. The transfer of inheritance to my brother or sister and me is not a priority. Reducing the likelihood that this will become a financial burden for us.
Their current income of about $50,000 a year comes from SS, pensions and some RMDS.
Their net worth ranges from $400,000 to $500,000, of which $200 is in their net worth and about $150,000 in retirement accounts.
Given the cost of LTC and their financial resources, it won't take a very long stay on the estate to qualify for Medicaid. The lawyer estimated that under the Medicaid family impoverishment rule in their state, my mom, as a spouse from the community, would be able to keep about $30,000 of counted assets, and she would be allowed a monthly income of about $2,600.
Longevity - living to the 90s and 100s is a common occurrence for both sides of our family. Like dementia, my mother's mother and her two siblings suffered from dementia/Alzheimer's disease at the age of 80, which required a long stay at LTC. So my mom is worried about a future in which assets have been spent on paying for my dad's LTC and she has almost nothing to care about.
What do you think about the pros and cons of a lawyer's offer to care for the elderly? Suggestions on alternative ways to achieve my parents' goals?
(This post was edited by martinaperezmartina on Sep 12, 2022, 3:51 AM)