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In this video I go against the grain a bit and talk about when people should not move their assets around in an attempt to qualify for long term care Medicaid.

So, here’s the background: Once people get to a certain age (maybe their 60’s, 70’s or 80’s), they start to worry how their finances will be affected if they can no longer care for themselves and they need to go into a nursing home facility - I’m not talking about a retirement village or an assisted living facility which are all private pay, I’m talking about a skilled care nursing home. People hear - accurately - that the monthly cost of a nursing home - depending on where you live - is anywhere from $7,000 to $15,000 or more - which is a big expense for just about everyone.

Then the next thought those people have, either because they either saw an elderly family member move into a nursing home, or they talked to friends or family, or they see something on the internet, is something like, “Can we protect our assets so that Medicaid will pay that monthly expense if we need to live in a nursing home.”

Most of Medicaid planning involves getting your assets out of your name at least five years before you enter a nursing home. And most people who engage in Medicaid planning transfer their assets to a particular type of irrevocable trust which states that the principal, or assets, of the trust can never be transferred directly from the trust back to the people who put their assets into the trust to protect them.

So on its face, Medicaid planning kind of sounds like a no-brainer - something everyone should do who worries they will be forced to deplete their entire estate to nursing home costs, leaving nothing for the survivors. But it’s not that simple.

0:00 Who Shouldn'Engage in Medicaid Eligibility Planning?
1:06 What is Medicaid Planning?
1:53 Typical Medicaid Planning Case
3:21 Should Someone With $2 Million Engage in Medicaid Planning?
3:49 Having Too Much To Be a Medicaid Recipient?
4:30 Can't Transfer IRA to a Trust or to an Individual
5:33 Descendants Refuse to Allow Parent to Live in Nursing Home
6:18 Medicaid Recipient Must Use Their Income First
7:22 Some Have Ethical or Moral Issues With Medicaid Planning
7:58 The Medicaid Application Process Can Be Challenging
8:56 Medicaid Planning Exists But It's Not For Everyone
9:17 Don't Disregard Estate Planning
10:27 A Combination of Factors Can Lead to Keeping Control of Estate