Invest Money In House Medicaid

#7 Have the Kids Take Care of You

I Took Care of You, Now Return the Favor

As a protection from nursing home costs, you could have your kids take care of you. I've had clients come to my office with the child who is the candidate for this honor. Sometimes the child doesn't know this. They sit in front of my desk and let me explain asset protection strategies. When I get to the nursing home issue, the parent confidently pronounces "if my son doesn't take care of me, then he'll get nothing when I'm gone." Then they look over at the (middle aged) child sitting next to them – eyebrows raised. "Isn't that right son?" they say.

It's important to consider: is the caretaker child in a position to help?

can-you-afford-to-age-in-place

Can you age in place?

I have seen this work. But it doesn't work for everyone. Often the caretaker, in their late sixties, after having taken care of the parent for ten or fifteen years, asks for some legal advice. What do they want to know? Is there going to be a lien on the house. I ask some questions. Many times, things have worked out well. Sometimes they have had a Mainecare home care aid coming to the house for years (see Option 8 Aging in Place). They ask me if there will be a Mainecare lien on mom's house when she passes away to pay back the state for those ten years of home aids. I analyze their situation and apply the law. If necessary, we put a plan in place to prevent the possibility of a Medicaid lien. But for Option 7 to work, the caretaker child must be willing to take on this responsibility in the first place. They should also be economically capable of doing it. If a well-meaning son or daughter takes on this responsibility, and then subsequently loses their job, or jeopardizes necessary income sources, it is a recipe for failure.

Here is an important thing to know : there may be a way to give the house or other assets to the child who is taking care of their parent at home. The issue arises when the parent has to go into a nursing home after the child has been taking care of the parent for a number of years. What many people do not realize is that they must document the proof of this arrangement before the years start to pass.

I've had clients who took care of a parent for years. Then, the parent must go into a nursing home. The child then realizes that the nursing home will cost ten or twelve thousand dollars a month. The child comes to me and says, "but I've taken care of mom for the last five years. Can't I get credit for that?" Unfortunately, many times, the answer is no. But if they had come to me in the beginning, we could have set up a plan that allowed the child to get credit for the care. Timing is very important. I've had child caretakers go to attorneys and ask that very question, and get the wrong answer. That is why it is important to get the information from an elder law attorney. Mainecare rules are complex, and constantly evolving.

Can Your Children Take Care of You?

Many children would love to keep their parents at home, but simply cannot do it. They have jobs and kids and are simply trying to keep it together without also turning their house into a residential care facility. But still, statistics have shown that the longer you are able to stay at home, the less likely you will need a stay at a nursing home. And if you do end up going into a nursing home, then the stay is much shorter. There is an asset protection plan that takes both into consideration. In upcoming options you'll learn how you can plan to qualify for benefits to help you age in place, maintain control of assets you give away, and if the time comes, qualify for a nursing home.

Some key takeaways for having your kids take care of you as an asset protection strategy:

You may be able to get credit for payments to your child for rent, or caregiving, but only if you have an agreement before the caretaking starts

If you must go into a nursing home after being with your kids for years, your kids may be able to get credit for that care

To get credit you must comply with the local Mainecare practices for documentation and proof.