Protecting Assets

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catcon49
catcon49 Member Posts: 398
in Lung Cancer #1
Does anyone know anything about protecting your assests from high medical bills and high cost of treatments?

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  • soccerfreaks
    soccerfreaks Member Posts: 2,788 Member
    #2
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    !
    Great topic, Cat! Just the other night, my wife and I were discussing the 'what if's' concerning one or the other of us needing to be placed into a nursing home (not that either of us is planning such a thing any time soon...I don't think!) and it seems it's a real quagmire, without even getting into your question.

    I think I know some things only to find that I am at least partially incorrect (a little knowledge is a dangerous thing) so I will sit back on this one and hope that someone comes forth with something edifying for all.

    Take care,

    Joe
  • sissylu1
    sissylu1 Member Posts: 66 Member
    #3
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    soccerfreaks said:

    !
    Great topic, Cat! Just the other night, my wife and I were discussing the 'what if's' concerning one or the other of us needing to be placed into a nursing home (not that either of us is planning such a thing any time soon...I don't think!) and it seems it's a real quagmire, without even getting into your question.

    I think I know some things only to find that I am at least partially incorrect (a little knowledge is a dangerous thing) so I will sit back on this one and hope that someone comes forth with something edifying for all.

    Take care,

    Joe

    protecting assets
    I am a Mental Health Professional in the State of Michigan and have worked in Social Services since I graduated from college, I am now a 51 year old post right middle lobe lobectomy since Dec of 2010 but I digress...anyway, protecting your assests can depend on what the laws in your state are..eg, in Michigan the state goes back 3-5 years when some apply for medicaid to aid in the payment of medical bills, etc...they do this to determine if families have been hiding/getting rid thier assests in order to qualify for state assistance..not suggessting you would do such a thing but at the same time the state does allow you to set up a funeral trust, certain cash gifts to family members, etc. I always advise my clients that by working and paying taxes all the years that you have that medicaid is an "entitlement" if you qualify so don't feel like you are asking for something you do not deserve..Medicare (which is very different from Medicaid) has its own set of rules.
    I work in the mental health system right now and know that families can work with attorneys to set up trusts to help maintain/care for an elderly and or disabled adult but always make sure you are working with someone whose area of expertise this is in the state with which you reside, it can be a very complicated issue....hope this helps!
  • cabbott
    cabbott Member Posts: 1,039 Member
    #4
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    Assets
    I wish I could get long term care insurance, but I no longer qualify for anything close to reasonable rates thanks to cancer so I'm also wondering what to do if I have to go in a nursing home at today's rates. At the moment my health insurance through my job has kept things very reasonable for the surgery and followup care.

    I have heard that you can gift up to 10 thousand dollars a year to someone and they won't have to claim it as taxable income. If you have 5 kids, that could reduce your assets by 50 thousand a year and the family hasn't really lost any money. It just won't be in your account. It may be that they don't even have to be related, but there is that trust issue and you don't sound like you want to throw your money away. If you are just a little over the limit for medicaid assistance, that would maybe get you under the limit without hurting your kids.

    If you own your home free and clear, you could consider a reverse mortgage. Check the fine print. You would get the money to pay your bills right away and get to stay in your house as long as you live. Your heirs would not get your house of course since it would belong to the bank. This might not protect your spouse, so check with a lawyer before you consider it. I hear it is not so great an idea though the TV makes it sound wonderful. Again, check with your legal advisors and financial consultants before you make such a move to be sure you can keep the house as long as you AND your spouse need it.

    Your medical social worker at whatever hospital you go to may have several more ideas. Medical social workers are trained to work with many different agencies and to solve all the problems that come up during treatment. They may not know what pills or surgeries you need, but they definately should know what to do about where to get the most service for the money you have. They may be able to find a service that can some part of treatment free or low cost. That may not solve the whole problem, but every little bit helps.

    Another idea I recently read was to shop around for services. If you have to have a CAT scan and pay out of pocket, find out which hospital or clinic is cheapest. Same thing for the prescriptions, chemo, and surgery. Let the places know if you are paying without insurance. Sometimes they can find a way to make things cheaper. Good luck!
  • Ex_Rock_n_Roller
    Ex_Rock_n_Roller Member Posts: 281 Member
    #5
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    Shielding assets
    I'm not a financial/tax expert and I don't play one on TV, but unless you started well ahead of time (i.e. before the 5-year lookback period), I don't think you have a hope of shielding anything, with the possible exception of your primary residence. I'm pretty sure the gifting thing doesn't work, even if you stay within IRS limits.

    You need a subject matter expert ( i.e. somebody who gets paid to know this).
  • JUDYV5
    JUDYV5 Member Posts: 392
    #6
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    cabbott said:

    Assets
    I wish I could get long term care insurance, but I no longer qualify for anything close to reasonable rates thanks to cancer so I'm also wondering what to do if I have to go in a nursing home at today's rates. At the moment my health insurance through my job has kept things very reasonable for the surgery and followup care.

    I have heard that you can gift up to 10 thousand dollars a year to someone and they won't have to claim it as taxable income. If you have 5 kids, that could reduce your assets by 50 thousand a year and the family hasn't really lost any money. It just won't be in your account. It may be that they don't even have to be related, but there is that trust issue and you don't sound like you want to throw your money away. If you are just a little over the limit for medicaid assistance, that would maybe get you under the limit without hurting your kids.

    If you own your home free and clear, you could consider a reverse mortgage. Check the fine print. You would get the money to pay your bills right away and get to stay in your house as long as you live. Your heirs would not get your house of course since it would belong to the bank. This might not protect your spouse, so check with a lawyer before you consider it. I hear it is not so great an idea though the TV makes it sound wonderful. Again, check with your legal advisors and financial consultants before you make such a move to be sure you can keep the house as long as you AND your spouse need it.

    Your medical social worker at whatever hospital you go to may have several more ideas. Medical social workers are trained to work with many different agencies and to solve all the problems that come up during treatment. They may not know what pills or surgeries you need, but they definately should know what to do about where to get the most service for the money you have. They may be able to find a service that can some part of treatment free or low cost. That may not solve the whole problem, but every little bit helps.

    Another idea I recently read was to shop around for services. If you have to have a CAT scan and pay out of pocket, find out which hospital or clinic is cheapest. Same thing for the prescriptions, chemo, and surgery. Let the places know if you are paying without insurance. Sometimes they can find a way to make things cheaper. Good luck!

    Assets
    The limit you can gif to a family member is actually 13,000 a year.
  • JUDYV5
    JUDYV5 Member Posts: 392
    #7
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    Ex_Rock_n_Roller said:

    Shielding assets
    I'm not a financial/tax expert and I don't play one on TV, but unless you started well ahead of time (i.e. before the 5-year lookback period), I don't think you have a hope of shielding anything, with the possible exception of your primary residence. I'm pretty sure the gifting thing doesn't work, even if you stay within IRS limits.

    You need a subject matter expert ( i.e. somebody who gets paid to know this).

    gifting
    I have received a "gift" from an elderly relative in a nursing home. I also know that you are allowed to prepay for a funeral. However, you need to talk to an expert. Another thing is that you never ever sign paperwork for finanancial responsiblity for anyone other then a spouse and a minor child.

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