U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-06-2017, 10:36 AM
 
Location: Charleston, SC
1,362 posts, read 766,452 times
Reputation: 2428

Advertisements

Very informative replies on this thread.

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.
Reply With Quote Quick reply to this message

 
Old 09-06-2017, 11:17 AM
 
71,517 posts, read 71,694,121 times
Reputation: 49088
these are all state related questions
Reply With Quote Quick reply to this message
 
Old 09-06-2017, 11:25 AM
 
Location: Charleston, SC
1,362 posts, read 766,452 times
Reputation: 2428
Even the exposure of 401K/IRA Retirement Funds ??

I found a State-based website for Costs in my area.
Reply With Quote Quick reply to this message
 
Old 09-06-2017, 11:30 AM
 
71,517 posts, read 71,694,121 times
Reputation: 49088
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 .


https://www.estateplanning.com/inher...rom-creditors/

Last edited by mathjak107; 09-06-2017 at 12:07 PM..
Reply With Quote Quick reply to this message
 
Old 09-06-2017, 12:08 PM
 
Location: Charleston, SC
1,362 posts, read 766,452 times
Reputation: 2428
I see.

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.
Reply With Quote Quick reply to this message
 
Old 09-06-2017, 12:10 PM
 
71,517 posts, read 71,694,121 times
Reputation: 49088
no , they usually do recovery after you are gone . they will go after it then and heirs will not get it .
Reply With Quote Quick reply to this message
 
Old 09-06-2017, 12:34 PM
 
8,194 posts, read 11,908,623 times
Reputation: 17964
Quote:
Originally Posted by mathjak107 View Post
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 .


https://www.estateplanning.com/inher...rom-creditors/
As well they should.

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.
Reply With Quote Quick reply to this message
 
Old 09-06-2017, 09:30 PM
 
Location: Baltimore, MD
3,745 posts, read 4,216,058 times
Reputation: 6866
Quote:
Originally Posted by mathjak107 View Post
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 .





https://www.estateplanning.com/inher...rom-creditors/
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?
Reply With Quote Quick reply to this message
 
Old 09-07-2017, 02:25 AM
 
71,517 posts, read 71,694,121 times
Reputation: 49088
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 .



-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
"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 "
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


.http://finance.zacks.com/can-ira-ben...aid-10889.html

Last edited by mathjak107; 09-07-2017 at 03:38 AM..
Reply With Quote Quick reply to this message
 
Old 09-07-2017, 03:03 AM
 
71,517 posts, read 71,694,121 times
Reputation: 49088
Quote:
Originally Posted by MadManofBethesda View Post
As well they should.

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 ..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top