LONG TERM CARE
LONG TERM CARE
YOU DO NOT HAVE TO SPEND DOWN YOUR ASSETS ON A NURSING HOME. YOU CAN ACCESS YOUR ENTITLEMENTS MEDICARE/MEDICAL TO PAY FOR LONG TERM CARE IF YOU OR YOUR SPOUSE BECOMES ILL. THE AVERAGE FAMILY IS BROKE WITHIN 3 YEARS OF A CATASTROPHIC ILLNESS. BY EMPLOYING THE PROPER PLANNING THROUGH ULTRA ESTATE PLANNING WE WILL LEGALLY PROTECT YOUR ASSETS. HERE IS HOW IT WORKS.
MEDICARE AND MEDI-CAL
MediCare pays for the first 20-100 days of care in the nursing home. The patient then has to qualify financially for his /her public benefit which is known as MediCal. Medi-Cal is the California version of Medicaid. MediCal pays for approved hospital, medical, prescription drug, and nursing home care. In order to qualify for benefits the individual must pass an asset and an income test, and not be able to do 3 out of 7 daily living activities (ADL).
MediCal’s asset test allows the applicant to have the following EXEMPT ASSETS and qualify:
- PRIMARY RESIDENCE
- $117,240 MARRIED
- $2,000 SINGLE
- LIFE INSURANCE ($1500)
- PREPAID FUNERAL
- QUALIFIED PLANS / IRA-401K
- PERSONAL PROPERTY
- MUSICAL INSTRUMENTS
NON EXEMPT ASSETS
- CHECKING ACCOUNTS
- SAVINGS ACCOUNTS
- MONEY MARKET ACCOUNTS
- CERTIFICATES OF DEPOSIT
- LIFE INSURANCE
- MUTUAL FUNDS
- VARIABLE ANNUITIES
- STOCKS AND BONDS
- ADDITIONAL PROPERTIES
MEDI-CAL PLANNING OPTIONS
Taking assets considered by MediCal to be “non exempt” and making them “exempt” using the following proven methods.
Spousal Annuity Trust – According to the Spousal Impoverishment Rules of the Medicare Catastrophic Coverage act of 1988 the Community Spouse is allowed to keep an unlimited income. Therefore assets held in a commercial annuity qualifying under the guidelines of the Department of Health Services to be actuarially sound, can be turned into an irrevocable stream of income payable to the healthy spouse. The contract is designed to be non-assignable and irrevocable upon demand further insulating the asset from attachment.
Immediate Annuity – Used when a nursing home stay is imminent or already in process. Asset can be shifted to healthy spouse via income. Single persons will use the annuity to qualify for public benefit but the payment has to be used towards their cost of care. In many cases the immediate annuity reduces the amount paid by the institutionalized person and allows for co payment by the DHS.
Stacked Gifting – Gifting assets to multiple beneficiaries in equal amounts based on the DHS average private room rate to reduce the period of disqualification. Large single gifts to individuals will be subject to a 30 month lookback period.
Purchasing Exempt Assets – Primary residence, car, pre-paid funeral arrangements, musical instruments can be purchased in order to turn non exempt liquid assets into exempt assets.
LONG TERM CARE ANNUITY contracts provide a safe haven for your retirement funds and can convert to a stream of income. In the event of a need for a nursing home where the contract owner needs long term care the amount of income is doubled.
LONG TERM CARE INSURANCE is designed to indemnify a person from the cost associated with catastrophic illness requiring assistance with daily living activities (ADL’s). There are three types of coverage including:
- Skilled Nursing or Assisted Living Facilities
- Home Care
- ER5Comprehensive – Covering both Facility and Home Care