Question for the Money Doctors
Question submitted on Nov 12, 2018.
QuestionWe have a legacy trust and we plan to put all our money in it to leave to family. We hope to get past the look back period and then go on medicade for long term care. Your thoughts please.
Not knowing the details of your financial affairs, we recommend that you consult with the elder care attorney who set up the legacy trust for you to address any specific concerns that you may have. Generally, you seem to be aware of the five year lookback period, and are likely aware that in order for the Medicaid planning to work, you need to transfer just about all of your assets (excluding your home and a car) to the trust, which will leave you for all intents and purposes destitute. Many people don't relish that prospect. Also, most nursing homes in our area require that you private pay for a year or two anyway, before they convert you to Medicaid. We suggest that you discuss the practicalities with a few nursing homes in your area before you fund the trust. Alternatively, have you looked into long term care insurance?
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