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My dad needs to go into nursing home in NC he gets about 3,500 from his pension a month , he also has a 15,000 life insurance policy from AARP can the nh take his indurance policy 15,000 life insurance AARP

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The policy if in force and with a Face value of over $50,000 can be converted to a LTC benefit. which will yield more than a Cash value surrender, however you'd have to provide me with more details,see my profile if you want to 'talk" to me offline.
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3500 a month plus his Social Security will cover most of the nursing home. If the AARP ins is owned by him, and has cash value, it will also go towards his NH bills. If he owns a home and/or business and there is no Community Spouse that too will go towards the bills. He can still own a car if he still drives but the insurance, gas etc expenses will not be affordable so essentially his car will go too.
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I am authorized LIFE CARE FUNDING AGENT :
ANY Policy with Face Value (death benefit over $50,000) can be EVALUATED.
Generally the LE (Life Expectancy) is less than 5 years, It is an approved Medicaid Spend down,! Most often is a better option than asking the insurance co for cash value!
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You may borrow money against the cash value of your policy at any time and for any reason assuming the contract allows this. Cash from a life insurance policy is usually not taxable. Using it to pay for healthcare should not be taxable either. Cash proceeds may be taxed only if they exceed the amount you've paid in. Depending on the policy, you may be able to surrender it tax-free to pay for long-term care. If over $50K and the insured has 5 yrs or less to live, contact LifePlans for an estimate of the long term care benefit they can provide tax free. They can give you this info over the phone and at no cost.
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if you have to cash in policy to pay for NH care is that money taxable? the policis are paid up
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Sounds like both you & husband will be relying on welfare for not just nursing home, but CS will also not have enough to live on after hubby dies (unless his pension has a survivor benefit). 15,000 is not going to last very long if that's all you have. I sincerely hope you contact a Medicaid Planning Attorney who can assist with the Best Time to apply, as well covering burial expenses for both of you, and give a best case scenario for how wife can live after hubby passes. So sorry you are in this predicament--if he gets 3500 pension he must have had a wonderful career somewhere (I am jealous, I receive no pension whatsoever and my spouse's is nowhere near 3500. These days people have to provide their own.....).
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If the policy is worth $50K or more and the person owning it wants to use it to help pay for private care at home or in assisted living (more amenities than the nursing home w/ all those roommates), there is a way to stop making your payments and turn it into an income stream paying your long-term care costs.
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Kallen's question shows us the many different categories of assets that are listed in every Medicaid application. In my state (Massachusetts) the Medicaid agency grants a free pass to 1 life insurance policy if it has a Cash Surrender Value under $1,500. You can Google the regulations for Kallen's state (North Carolina) and find that her state may be more generous with cash surrender value.

If the life insurance policy doesn't have a cash surrender value ((some policies that were provided and paid up by employers before the person retired don't have C S V)) then it is not even counted against you. Term life insurance may not have a cash surrender value, but then how will you keep paying premiums to keep the policy in force if your income is taken to cover the nursing home patient paid amount?

In my state (Massachusetts) there are several ways the cash surrender value can be reduced to bring the policy into compliance.

Also, if there is a spouse living at home, a life insurance policy could be included in the asset allowance for the spouse ((called the Community Spouse Resource Allowance in my state, Community Spouse Resource Protection in some other states)).

There's so much to consider when applying, it is usually a positive cost-benefit decision to hire help with the application and asset planning.
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It costs anywhere from $70,000 to $85,000 a year to maintain ONE nursing home patient. If he is not on Medicaid, you will have to ask an eldercare attorney because it is complicated with a five year lookback law. $3,500 a month-that's better than most--he actually can live quite well in an assisted living facility but if he needs more intense care, you will need to see an eldercare attorney.
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Does he really need to go to a nursing home? If a board and care home is adequate for his needs, I might guess he could afford it for $3500 a month in NC. Nursing homes are needed if you cannot move from a bed or chair without 2 people helping you and/or if you need a registered nurse administering meds. If only one can help, the B&C may be enough, and nay afford better care and privacy than a nursing home with several room mates.
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md bases the property taxes on your income, if you have a low income you don't pay anything
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wamnanealz, check with an eldercare attorney. maybe the face value is low enough you can keep it, maybe there is a way to change ownership or beneficiary so it does not count - do you have no SSI or any other source of income or savings at all??
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Estate Recovery
When a Medicaid recipient receiving any of the above long-term care services dies, Medicaid seeks to recover certain expenses. There will be a claim filed against the estate. Under certain circumstances, estate recovery may not apply. Your local County Department of Social Services (DSS) can provide more detail information.
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wamnanealz that would be terrible for you, must be some way around that
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But the life insurance is all I have. I planned on living on that in my old age, because he is 10 years older than I and I knew it was logical that he would pass first So when they take that I will have nothing. Except for the house and the car. And little way to pay taxes!
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In Iowa, you are not allowed to have a whole life policy unless you have turned it over to a funeral home. Otherwise you have to cash it in and use it towards your spenddown. You are only allowed $2,000 in resources. You go over that, and you no longer qualify for medicaid. There is no allowance for life insurance unless it is a term policy.
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Who owns the life insurance? If it's your dad, it has to be converted to some other product (ask elder care lawyer) or it goes to Medicaid for dad's needs. If policy is owned by someone else then Medicaid can't touch it.
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My comments approx number 13 cover these questions
Thanks
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Burial Policy can be exempt but I don't think the Life insurance can be.
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In NC, I believe up to $10,000 insurance policy, irrevocable burial policies, the homesite and a vehicle can be excluded if you are thinking about Medicaid.
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Really if you are looking to becoming the "community spouse" or you have either your mom or dad in that situation, you need good experienced legal as there are just so many more details and errors possible for CS planning.

Regular individual Medicaid for NH is pretty exact - they have to become impoverished about 2K monthly income & 2K assets but they can have their homestead & a car as an exempt asset and then FH as allowed by the state. Now they will have no income to pay on either the house or the care anymore but hey, they can still continue to own it (And family need to pay all on both from now till beyond death when probate settles).

But CS is waaaaay more complicated. Really you don't want to become the widow living on food pantry from the local church if you can help it. And based on my experience in all this with my mom & MIL, all of us, if we live long enough and unless we are generationally wealthy, we will eventually run out of money as the costs of health care and NH are just staggering and likely need to apply for Medicaid. A decade younger CS can expect to outlive her in the NH spouse by about a dz years for each. 114K in savings just isn't that much of a nest egg. Really it's totally all worth spending the $ to get advice and options from good legal as what to do that is Medicaid compliant and do this BEFORE the spouse needs to apply for Medicaid. Some items will need to clear your bank account and bank statement to not have an issue for Medicaid. If you use some of the excess $ to pay off a mortgage, well that could take a month to process. Or you use the excess asset $ to buy yourself a compliant SPIA that could take a couple of weeks to get established & clear banking. Or the time for insurance company to change your beneficiary on the life insurance policies to anyone else but your hubby, so he doesn't end up with a windfall & become Medicaid ineligible.

Simple things - like giving 2nd car to grandchild - is a penalty problem for the CS.
CS is just more complicated and not a DIY project imho. You need legal.
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Wamnanealz, that is not correct.
You can keep have of joint assets, all of your own personal assets and the family home and one car.
Now the life insurance is another matter.That would have to be cashed in and used for your husbands care.
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Wamna & Brit - the Medicaid rules for " community spouse" are very different than for an individual who applies for medicaid. You - the spouse - areNOT expected to yourself become impoverished. Most states have it so that the CS can have 114k liquid assets plus home & car & their income isnt counted. But how to best manage all that well I think really you need someone experienced & knowledgeable in how Medicaid is vetted in your state to maximize the situation. Often for CS is that your focus is on day to day chaos of caregiving of your spouse and rightly so. It is hard to figure out Medicaid without distractions much less when you are a daily caregiver. Heisers book is really priceless as it gives you a benchmark for what the medicaid and aging system is. Is just so valuable to enable you to come up with ? to ask your local elder law attorney. Then they in turn will know just who to work with you like a FA in whatever changes need to be done with your assets.

Miller trusts are great, but maybe a CS may not need to get one done if they can get most of NH spouses monthly income to be CSRA or MMNA as payable to spouse for maintenance & living expenses. So if your states Medicaid monthly income max is $2100 but the CRSA or MMNA max is $2,700 and NH hubs income is $3k, his medicaid copay would be only $300. Probably better than putting $900 overage in Miller which state totally gets as the beneficary of the Miller Trust. Really whats best is just so much is tied into your unique $ circumstances & how your state administers medicaid. This is why you need good experienced elder law & FA's to provide you with options.
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Research, research, research, and then read the Medicaid rules in your state. All states have the ability to make alterations. For example, in CA, they have Medi-Cal and its not exactly the same as Medi-Caid! Each county also has different approaches. But its extremely important to understand the rules that you are being subjected to because you have to follow them for spend-down, asset protection, spousal protection, and last but most importantly, the protection of your loved one.
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I f he has a spouse, you need an elder law attorney. He can not show very many asests , BUT his spouse can have more in her name only. Spouse entirled to stay in home and own a vehicle plus monies to live
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A Miller Trust is something a spouse needs to look into. If the husband OR wife as to go into a NH, the spouse living at home must have a place to live and means for upkeep. Please check with an elder law attorney about a Miller Trust.
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Matpower that is not right. I live in MD and I pay according to my properties' value. It is a percentage. I applied for the senior's allowance. It will not go up from now on as long as I file for it every year. I could have been doing this for years and didn't' know it. If either spouse is 70, you can get it.
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in md your property taxes are based on your income most of my retired friends don't pay any property taxes
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He gets $3500. He should be able to afford to stay at home and get a caregiver. If he is total care or can be considered hospice , he will be better off at home. Everyone is right, consider him dead if he goes into the nursing home. nursing home is the beginning of the end, sorry to say.
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Cetude, gave very good information as did others.

If your father could go into an A/L his pension would cover most of that depending on what he is in.
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