Quote:
Originally Posted by retiredguy123
I would never advise someone with a net worth of over $1 million to endeavour to become eligible for Medicaid.
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What you don't know is how long that million will last in under different scenarios, and under certain scenarios, a person with a million can end up on medicaid if the assets aren't maximized for income to offset the rising costs and the person lives long enough. My mom has burned through over $300K in three years in a dementia locked facility, and will go through $500K in another 3 years. . in 4 years from now that million is zero and now she is on medicaid. The hospital only allowed her to be released on hospice, but the will graduate from hospice this spring. . . you just don't know. If I had opted to have 24x7 nursing care at home, that would have been $600K over 3 years, and then in two years, she would be on medicaid, in a locked facility.
I worked with someone whose father is on medicaid for dementia. His father lived with the colleague in his home. Medicaid paid for his living expenses, but he was not in a nursing home or anything like that. Too many pre conceived notions about certain outcomes. Now he didn't have a million, but he lived as normal a life as he was able to do whatever he wanted while living in his nephews house.
People who put all their money in medicaid untouchable trusts, certain types of irrevocable trusts, are also eligible for medicaid support.
What the decision comes down to is:
how do you value your money?
how do you think/feel about not depending upon it but give it to family members who can use it productively when they need it more than you do?
How long do you think you will live and how do you think you will die? (impossible to answer but worth a try)
If you can't live by yourself, are you counting on your offspring to take care of you? If not, who is going to take care of you?
My parents saved most of theirs and seldom helped out any family members with money.
My wife's parents gave away most of their money to their children to use when the parents didn't need the money.
Everyone is different, and there is no one right answer, there are scenarios to plan for or not if you choose.
Interesting discussion for sure to listen to different responses on how people think about the future, and the future is always uncertain, sometime more uncertain than at other times.