My mother may end up in a long term care facility. My mother and father currently own a home. If he sells the home and gives the money to someone else as a gift- which would be eventually used as a down payment on their home can the state seek money from the other party to pay for the care facility? My father has worked very hard for what they have and stands to loose everything to the astronomical costs of a care facility. Any suggestions? Time frames for action?
I don't think you quite understand this situation, though it is not uncommon and shows up here often. Yes, if Mother goes on Medicaid then Father needs to protect as many assets for himself as he can. He may live another 10 or 20 or 30 years in fairly good health and never need a care center himself, but he certainly will need something to live on. That is why Medicaid allows the "community" spouse to legally keep a certain level of assets and why there are other legal means of protecting some of the assets for him to use for his own living expenses and care as he ages. He is not trying to cheat the system -- he wants to maintain some of his assets for his own care, rather than just count on welfare or Medicaid in his own future.
A longterm chronic illness -- the kind that eventually may result in care center placement -- is financially devastating to both spouses. (Been there. Doing that.) It is only acting responsibly to try to minimize the devastation to the "well" spouse who will continue to live in the community.
He may need Medicaid for his wife, and also himself. Why is this a problem? You work hard all youe life and try to make it last. It most likely will not last. Who can afford $90, 000 year NH? Nobody except multi-millionaire.
Assets are what you use to take care of yourself and your wife.
As it stands right now, in the US we are expected to use what we have to support ourselves. As we live longer and longer, and are therefore subject to more and more chronic conditions, it is very hard for most of us to have enough to continue to support ourselves and pay for our healthcare until we are 98. Many, many of us are going to run out of money before we die.
Your parents don't need a care center yet. This is a great time to consult an attorney who specializes in estate planning and/or Elder Law, and set things up so that the money will last as long as possible and that if one parent needs a care center the other will not be impoverished. Don't start giving things away without good legal guidance.
So, your choices are, to plan for old age or go on welfare when you've spent your money.
If your mom has long-term care insurance, then call the insurance company immediately, otherwise, it is too late for her to get one.
You may try other long-term care alternatives like medically written annuities or if she has life insurance, she can convert it to cover ltc expenses.