If/when someone reaches an age and physical condition where they can no longer be taken care of at home why should they be able to hide their assests in a trust so they can qualify to have Medicaid (Medicare only pays for nursing home care in very limited circumstances) pay for their nursing home care and allow their children to inherit their assets? Medicaid is supposed to be for the indigent - not people who want to leave an inhertiance to their children.
People are hiding their assests in trusts to hide those assets form the government - it is a legalized form of fraud.
What are your thoughts? Is it a parent's obligation to provide an inheritance for his heirs? Does the financial situation of the children make any difference?
I'm sure there are, Phoenix - out here (southern Cal) it's almost impossible
as the demand is far greater than the supply.
I guess there is a lot to consider when getting older and not being able
to care for yourself. One thing for sure, I'll hang onto my own house until
death do us part. I will not see a nursing home other than for visiting
We also didn't do education funds for the kids because we both paid for our own and we think they should do the same. Nothing wrong with a little hard work. We did support them at home, though.
One of the things that you might want to consider when you are in your 50s is long term care insurance. At that age, you can get a policy rather cheaply. When you are over 65, the price jumps considerably. You need to be careful, and compare policies and companies.
I volunteered in an upscale nursing facility here in town, and it was
such an eye opener that I made up my mind to never get into one.
Mame wrote:We also didn't do education funds for the kids because we both paid for our own and we think they should do the same. Nothing wrong with a little hard work. We did support them at home, though.
The problem there is that college educations now cost way, WAY more than they did a generation or two ago, and they're continuing to rise. It's just not really equivalent any more.
My parents didn't save for my education and contributed the minimum required by financial aid (often less). I graduated with a whopping amount of debt that I only recently finally paid off. I got some scholarships and worked, and had far less debt than many of my peers, but it was still a whopping amount.
I am definitely saving for my daughter's college education.