"Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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I don't know if this changes state to state or not, but in my state the look-back period is 5 years. This is in regard to people placing their home in a child's name so that it is protected. It must be done at least 5 years prior to the person receiving nursing home care. I am not sure about other assets, if the same time frame is applicable or at all.
"Like a bird on the wire, like a drunk in the midnight choir, I have tried in my way to be free." Leonard Cohen
I believe that it does vary by state. I believe mine protects a residence, a car and a certain level of assets from the draw-down requirement. I also think there is a look-back period that would look at significant asset transfers between spouses just prior to a divorce. We are a community property state anyway, which in itself could limit the strategy the OP describes. I would expect that in most states you would need some significant assets and fairly expensive advice well in advance of the event to make a Medicaid divorce a worthwhile strategy. Depending on a number of factors, such as being married less than ten years, you might be risking other benefits by divorcing.
At the risk of contributing to the class war rhetoric, I would say that such a strategy would work best for wealthier people.
uh though they aren't the super rich, these people sound like they might be classified as upper class as well.Not to veer too far off-topic, but the upper classes game the system as well.
Trees don't grow on money
I would also think it would be an interesting discussion to determine who gets the assets and insurance and who gets consigned to the Medicaid facility if they in fact do get transferred.
New Style Medicaid, the program that came with OmabamaCare in the states that took it up, does not pay any attention to assets. There are multimillionaires on Medicaid. Some even on this website.
Being on Medicaid in this situation is just one step beyond what I am doing, paying $0 in premiums for Health insurance. Of course, if I actually USE any health care services I have to pay for them, and that is not a complaint. We essentially have a high deductible insurance policy (that really isnt very high.) The only catch, theoretically, is that I have to have lowish income to get it.
Last edited by iris lilies; 4-2-18 at 12:39pm.
Thanks everyone so much. So many of the points I was thinking about have been raised. DH and I had a long discussion about what our strategy should be. At this point we are looking into what our options are.
I think the thing that stunned me about this person is they are very outspoken about government benefits going to people who in their eyes don’t “need it.”
for instance multi millionaires getting social security which I have no problem with because they are the ones who have supported many social programs through the years and were forced to pay into it.
Also, we have a friend who died in his 30’s. He had good life insurance through work, his volunteer firefighting and a term policy. His wife put the social security survivor benefits they got into college accounts. She stayed in their modest paid off house and worked part time so she could spend more time with the kids. My friend thought she should not have gotten social security because she didn’t need it. Fast forward twenty years in the future and the kids are engineers and physicians. Could they have achieved that had she not wisely used the help given to them which was all legal? Of course no way of knowing that but it certainly must have helped those kids.
And like the estate tax. That was hugely criticized when it was raised as it only affects a small portion of society, but on the other hand why should they not benefit if they have paid all their legal taxes through the years and worked hard?
so many dilemmas to think about. I do find it funny though when people rail against social programs yet will jump at the chance to benefit themselves. That is human nature I guess.
not taking a social program one is eligible for free and clear is for most people pure stupidity that becomes one of those bad life choices that inevitably leads to poverty. But fraud is another matter, and yes fraud is illegal (and if a social program has restraints and isn't open to all, ie it's not a guaranteed income or Social Security and Medicare after a certain age, then it does punish anyone who is actually playing by the rules, and many will play by the rules out of sheer honesty, regardless of their politics). This straddles the line as I guess many things do.so many dilemmas to think about. I do find it funny though when people rail against social programs yet will jump at the chance to benefit themselves. That is human nature I guess.
Trees don't grow on money
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