Schaumburger - We are still in the retirement learning process and probably will be for some time. There are so many retirement topics where we find we need to be educated. Kudos to you for being such an avid researcher. We have started to do our estate planning. We recently learned that FL Medicaid works differently than almost every other state. If you are planning on retiring in FL, as you seem to be, I would recommend that you work with a financial planner/estate planner/tax planner that is in this state. Many of them hold free seminars and/or provide free consultation. Take advantage while you are visiting TV to check this out.
retiredguy123 has it correct, in FL, you can, through a "Medicaid" Trust, protect your assets from being spent down in order to qualify you for Medicaid. You have your FL elder care attorney create the irrevocable trust and then you wait until just before you need Medicaid to fund it. The current law allows a five year look back (claw back) and the younger you are when you set it up, the greater the dollar assets you will be able to protect. So, if you set up your "Medicaid" Trust early, you will (likely) pass the five year mark before you need Medicaid, and will be able to protect substantial assets, which can still be used to provide for your care, definitely nursing home and some assisted living facilities. (Assisted Living facilities in FL can take Medicaid, which is not the same in many other states.)
The reason I (and others here) mention this is that it may diminish the need to purchase LTC insurance. Sure, LTC can give you home health care options and SWAN peace of mind, but at what cost and what potential negatives. Only you can make your decision here and I applaud you for applying for LTC and finding out what the policy premiums and benefits are for you....but before you buy, you might want to look at the "Medicaid" Trust option. You pay a one time fee to set it up. It stays unfunded until you need it (which may be never). It will protect all your non-income assets from going to a nursing home. (Income Assets that are used to pay for your nursing home care are: Social Security, Pensions, RMDs from your IRAs/401(k)s ). This is only good if you live in Florida/homestead in FL.
Please note that the "Medicaid" Trust is not the same as the Life Estate Trust where you create the trust and retitle your home(s), personal property, bank accounts, etc. into the Life Estate Trust (aka Family Trust; A and B Trusts, etc.) These are different legal instruments and do different things.
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