My question is how do you as a spouse keep and stay in your current home when placing your LO in a ALF? I am getting so many different views on this. I am thinking soon I will have to place my hubby but because of our home and the amount of equity in it I do not wish to sell it or use it for paying for his care. He has long term care insurance and he is also a vet is what I am using to pay for his care. When placing do you still get te SSD and Long term disability from his employer if he is placed?
I have wondered the same thing. Each state is different but I believe that the community spouse does get a portion of your LO's income. Maybe somebody else knows more. I do know it's complicated.
Deb--your response seems to apply to Medicaid, but angelb said she will use LTC insurance and some sort of Veteran's benefits to pay for his care. Social Security Disability converts over to a retirement benefit at 65 and continues for life, regardless of where the person lives. Re the long term disability payments from his employer, check the paperwork for the name of the insurance agent who sold him the coverage and call them. Bottom line, if one has enough income from other sources to pay for an ALF, selling the home or pulling out equity should not be necessary to pay for care.
angelb-I think your best option right now would be to talk with an eldercare attorney about your opitions and probably a good financial advisor who has experience with working with someone who will be placed in an ALF. Read his LTC policy-how long does it cover his expenses? Is there a financial cap (ours is $400,000) on what they will pay? Contact his employer's benefits department and ask how long he will qualify to receive LTD benefits. Typically, LTD benefits are paid until retirement age (65/66 or according to ss retirement tables based on birth year) at which point they end. Ask for a copy of the LTD summary plan description (spd) so you have the terms/conditions of the plan. If your husband was/is a member of a labor union, see if they can help you better understand his employers benefits. Usually the employers LTD payments will be offset by any SSDI received. For example, if he receives $3000.00/mo in LTD payments and $1500.00/mo in SSDI, the employer's LTD plan will pay $1500.00/mo and SSDI will pay $1500.00 to total the $3000.00 he would receive from the employers LTD plan.
I just went through some of this when I placed my Father last month. They own a home in a very good location and Mom was afraid of losing the home as Dad's LTC is being paid my Medical (were in CA). We hired an Elder Care Lawyer. In CA, the remaining spouce can stay in the home, however, once she passes the state can come in and place a lein on the home. To avoid this from happening, the house was placed in a "Grantors Trust". By doing this, mom cannot refinance, take out a equity loan or do a reverse mortgage. Bascially she no longer owns the home the trust does. She however is still responsible for all taxes etc. At 82 this was a good choice to make. I'm the trustee, I can sell the house tomorrow if need be. If mom wanted to move closer to me, I'd sell the home, place any monies made in the Trust and then I could go ahead and purchase a new home for mom to stay in using those monies. Something you might want to check into. Please do not confuse a Grantor's Trust with a Living Trust, totally different. Also, in CA the spouse living at home is entitled to $2700.00 to live off of. Anything over and above that amout is what is considered a Co Pay for Dads placement and has to be paid toward his long term care.
Now there is the problem for me. I am 82 also and I know I can live in this house but if Medicaid is in DH's future I can only sell the house and buy another one. I don't want to own a house with all the up keep, insurance and taxes. All I want is to rent an apartment near my children. After looking at the facts the only solution for me is to stay here and hope that I don't have to place him. We do have a Living Trust and after reading all the information I am wondering why we set it up. Oh, I remember, we attended a luncheon and drank the kool aid. I know, Grace, see an Elder Care Attorney. The only problem is that we do not have one here and I need someone to stay with DH. Maybe, when the girls come this summer I can make an appointment.
Bama: I'm no lawyer, but I would go to a Elder Law Lawyer and ask about the Grantor Trust. As I remember (and I just started reading this 100+ Grantor Trust I received in the mail today......)If Mom needed lets say assisted living or wanted to move closer to me and wanted to rent an appartment.....I (as the trustee) could/would sell the house , all monies from the sale would go back into the Grantor Trust....however, I as the trustee can remove any monies necessary for the care and well being of Mom (Mom cannot touch anything in the trust), ie, pay her rent in an apt or pay to an assisted living establishment. If and when she passes then whatever is left in the trust will be disbursed to myself and children as outlined in the trust. Something you could check into. I think some Elder Law Lawyers have a 1 hour free consultation....it's worth a try, go and ask about a Grantor Trust and see if your state allows this. It will save your home and or any assets from it for your children etc.
Thank you, Rae Ann, for making me do a little thinking. I googled Grantor Trust and also Living Trust. After reading numerous articles and the pros and cons on Living Trust (like the one we have) I don't believe it is something we need. In fact, I believe we were sold an expensive bill of goods. By the way, ours is revocable and with the small amount of assets we have I can think of no good reason to have it. I am going to make an appointment with an Elder Care Attorney and see where it leads me. I may find myself living in this house and not moving to where the children are and that is a shame because I really need some help. Oh, well, I'll just follow the yellow brick road and trust the Good Lord above.
Bama: I'm glad to hear you will check into an Elder Care Attorney. Having the Grantor Trust will prevent the state from placing a lien on your home should your LO be placed in a care facility under Medicade/MediCal. If nothing else your children will inherit what you have in the trust, your home etc. Also, if any checking accounts, IRA's, Insurance policies you have, have your LO listed as the beneficiary, change this immediately. No use having any assets going to your LO, the state will take it if he has been placed. Better for your children or your designiated person get it. My mom had to change all of hers from my father to me. Rae
My in-laws did a quit claim deed on their house years ago adding all the kids to it. Now to wait and see how long before BIL does something about selling it. WE could sure use the money to pay off bills and then do things hb wants to while he can. He still wants to do the Alaska cruise.