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splitting a trust

Posted by beaglebuddy (My Page) on
Wed, Mar 8, 06 at 14:28

My mother is in a nursing home and my father is still at home w/ an aid. I understand there is a way to seperate their finances so medicaid (california) will pick up the nursing home fees that do not get paid by their long term insurance and we won't have to reimburse the state after she passes. Anyone familiar w/ all this ?


Follow-Up Postings:

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RE: splitting a trust

Not sure about California but you can't do that in Michigan any more... I think they go back 3 or 4 years to see who had the money... I do know that you can't have more $2000. in assets if you want Medicare to pick up the tab...

Rita


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RE: splitting a trust

I am reasonably sure it can't be done in Washington. My mother-in-law was in a nursing home for several years. My father-in-law was still in the process of a "spend down" when she died. He would have been allowed to keep his home and one car so he made sure that the house was paid for and in good repair and he had a decent car. I hope you get an answer from someone in California, but that sounds like it would be in violation of Medicare rules.


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RE: splitting a trust

Oh, there is one thing I'd like to suggest... Pre-paid funeral arrangements for both your parents... If they don't already have them it's good way to shield some of their money from the government and it will be less expense for you when the time comes... But it seems to me that your mom's long term insurance should cover everything... I mean, that's the whole idea behind it...

Rita


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RE: splitting a trust

pre-paid funeral expenses is a wonderful idea. My husband and I are still buying green bananas, but we were thinking that it would be easier for our children if we bought an inexpensive plot that we know about now.


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RE: splitting a trust

And the best part is you can go YOUR way, even write up your own obit... lol

We got a pre-paid funeral for hubby's nephew and when he passed, two years later, we had enough extra in the account for extra flowers and what not... See, what happens is you pick out the way you want everything to go and they charge you in today's prices plus a very reasonable amount for inflation and anything your account earns over that amount is used to upgrade your plans... The way I figure it you can prepay for an el cheap-o and if you live a long time then you can go out in style... LOL

Oh you can set it up with one funeral home and change at a later date if you want... And you don't have to worry about the home going out of business, it's put in trust for your funeral and your funeral only.

Rita


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RE: splitting a trust

I've heard if assets are transferred into a LLC, they can't be attached later. (I'm not an attorney so don't quote me on this.)

If I had a disabled person's future to consider, I would probably talk to an Estate planning/elder law attorney.

Here's a link you might find useful. The author is a financial planner based in CA. http://www.efmoody.com/accolades.html


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RE: splitting a trust

This is my understanding of an LLC: It can be used to shield assets, but it doesn't kick in for 3 years (because this isn't supposed to be an estate planning device) which would probably be too late for the OP

In general, I really dislike the idea of shielding assets from the government and then asking for public support. I don't think that because people are wealthy or savvy enough to afford an attorney they are welcome to our support without consequence to their financial condition.

My father-in-law set one up, but rescinded it because he discovered that he couldn't handle the loss of control he felt. I was sooooooo glad.


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RE: splitting a trust

I hole hearted agree devorah...but remember there are many people waiting for us to go and then jump in to grab our money and estate from our loved ones- for NO reason other than greed!

my attorney made sure that my remaining estate would stay private and go 100% to my loved ones - with no judges, courts, taxes or attorneys (not even him!) involved at all. quite a guy.

Christie


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RE: splitting a trust

What's a LLC?

Rita


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RE: splitting a trust

limited liability corporation


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RE: splitting a trust

Thanks...

Rita


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