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Some questions to clarify.....
If Assisted Living stay is necessary, what individual assets are exposed to the AL facility ? Are 401K/IRA untouchable ?? Can they garnish my SocSec or Pension check ?
I see talk of two different levels of "Care" here -- There's a Home Health Aid, and the full Assisted Living facility. Is there a website that would give an estimate of these costs in a specific region of the country ??
What is the length of a typical Assisted Living stay ?? If I'm stuck in an AL room for more than a year....I'd ask someone to bring me a bottle of Sleeping Pills !! If they can't cure what ails me in 12 months, I'll say my good-byes and take a long nap.
i can't say , that is really for a local lawyer to answer . but i do know this .the states usually wait until your death to recover from the estate . . a landmark case in 2014 ruled that inherited ira's and 401k's ear marked for heirs are not protected assets anymore and can be gone after by creditors .
heirs do not get the same protection you do when they are your accounts and since most recoveries are against the estate they will not be protected once you are gone . heirs had to give the money back .
South Carolina exempts a Home, one Car, and a Burial Trust Fund.
They make reference to exempting --
vii. Retirement funds that cannot be converted into cash.
I suppose 401K/IRA's could be converted into Cash, but at a Penalty. Would states really make you cash out your Retirement Funds......very unclear to me at this time.
i can't say , that is really for a local lawyer to answer . but i do know this .the states usually wait until your death to recover from the estate . . a landmark case in 2014 ruled that inherited ira's and 401k's ear marked for heirs are not protected assets anymore and can be gone after by creditors .
heirs do not get the same protection you do when they are your accounts and since most recoveries are against the estate they will not be protected once you are gone . heirs had to give the money back .
i can't say , that is really for a local lawyer to answer . but i do know this .the states usually wait until your death to recover from the estate . . a landmark case in 2014 ruled that inherited ira's and 401k's ear marked for heirs are not protected assets anymore and can be gone after by creditors .
heirs do not get the same protection you do when they are your accounts and since most recoveries are against the estate they will not be protected once you are gone . heirs had to give the money back .
I see nothing in the decision that indicates the funds from a traditional IRA that are transferred on death (TOD) is subject to a claw back by the nursing home (or any other creditor) to pay the deceased's debts. The case cited pertains to an adult child who had filed bankruptcy and essentially argued that the Inherited IRA should not be used to pay off her debts.
Is there another case out there that supports your interpretation?
good question , i see nothing either way as to if medicaid can be a creditor or not . but i think i found why it is not addressed .
i believe the answer in a round about way is while 401k's and ira's can't be taken by creditors in many states while you are alive , they are subject to spending down to qualify for medicaid .in theory you can't get medicaid if you have much money in ira's so it can't be an issue . the same thing applies to homes people put in living revocable trusts . while a home is a protected asset and can't be taken by medicaid , the fact is once in a revocable trust it becomes a countable asset to qualify . the house has to be sold , the money spent down just to qualify .
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"Medicaid provides payments for medical and nursing care assistance to people with few assets. Most states require you to spend down all but $2,000 of your money to qualify for Medicaid. Your individual retirement account figures into your ability to qualify "
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People should not be able to leave money and other assets to their heirs while leaving taxpayers holding the bag and having to pay for their care.
as you see above , the assets in an ira or 401k have to be spent down just to qualify for it so owing medicaid more than 2k or so and passing on ira's to heirs in theory really can't happen from what i see ..
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