Long Term Care. What are your thoughts and experiences with LTC and/or LTC insurance?
- Thread starter Blu-ish
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I don't have any experience yet. My Parents are mid 70s and my In-Laws in their 80s so these thoughts have crept in over the last few years. I have friends who have gone through this and they have all said the same thing- get the house out of their name. I don't know your situation friend, but my heart goes out to you.
Yep. It's has to be out of their name for five years. No matter how old they are, just do it. The worst that could happen is that you have to still sell assets to pay for their care.
My parents care came out of their assets because we did nothing. We did a lot of talking, but ultimately nothing.
My father had 14 months of ltc. In 2013, ltc in Kentucky was $7000/month. Medicare paid the first 90 days. It doesn't pay for that many days now.
Illinois is just across the river from me. Ltc has been right at 1/2 of Kentucky ltc. I have never had a clear answer as to why. It was $3500/month over there.
If they served, check with your va. The va moves as slow as molasses. Check before you need them because your parent will pass before you see any action.
My mother was an unusual case. She just couldn't be alone. She was in assisted living for nine years. Most residents don't stay long. At her two year mark, she had the longest tenure there. She moved in one month after my father went ltc. In 2013, it was $3500/month here in Ky. The last half of 2021 it was $5000/month. I hear Ky ltc is over $10000/month now.
My inlaws put every thing in a trust 15 years ago. My fil spent one night in hospice before he passed back in 2012.
My mil is 93 and still lives at home and is very active.
I have a question about trusts for anyone in the know.
My two bils set the trust up. Since the house was in the trust, the house was sold out of the trust to a 40 year old grandchild last year. The trust financed this grandchild inhouse with a Zero down, 25 year loan(5.5%). My mil is now a tenant and the grandchild is handling all of the maintenance. The grandson intends for the house to be a rental after my mil passing. The grandchild is a good guy and already has multiple properties himself. It just seems overly complicated.
I'm not a fan of this situation, but we are not there and both brothers are taking good care of their mother and visit her daily. I trust everyone involved, but doesn't mean poor decisions can't be made.
My question:
In a regular asset inheritance, my wife would inherit the property tax free(up to whatever limit) at the value at my mil passing.
But, here we are with this trust that is going to be receiving income for the next 24 years. My wife will inherit a share of this trust. Are we or the trust paying taxes on that income every year?
tia
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Will put an end to my life before going to long term care facility. Cost is ridiculous. I hope God forgives me.
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I’m in the same situation with pop’s with dementia/Alzheimer’s. l moved him in with me for now which is not ideal but I don’t think he needs to be in a home yet but it also can’t come at the expense of my social life which it has.
7K/month is correct and that’s so ridiculous. 84K a year? Gtfoh. I’m in the process of lawyers and getting the POA, pain in the ***. You have to be rich or you’re stuck in a horrible home. But they also want to take everything he’s worth.
He’s got plenty of money but 7K/month will eat through that very quickly.
He always said he would off himself “take a long walk off a short pier” if he was getting it but it’s too late by the time it happens. He doesn’t even realize it now. Just living every day in another world.
It’s completely dependent upon the type of trust set-up, there are lots of different ones. A lot of them you will not pay taxes on passive real estate income - but the trust should have a trust accountant associated with it that should be able to answer all the questions for it. It was definitely wise to have a trust.
My mom is an only child. She had a really hard time when it came time to put her parents in a facility because they had nothing in place and grandpa was so stubborn he swore he could care for himself and my grandmother at home. He was 92 and needed a wheelchair to get around. She was 90 and had severe Alzheimer’s to the point she was a vegetable.
I’m also an only child and my mom’s experience led her to go ahead and setup LTC care for her and dad. I think they did it through their financial advisor. They designated me as power of attorney, and when the time comes, I pretty much sign some docs and their LTC insurance kicks in at whatever facility I put them in. They’re both nearing 80, so that time will come sooner rather than later. They’re already doing that thing where they randomly gift my wife and I anywhere from $200 to $1000 at random intervals so we don’t have to pay taxes on everything when they’re gone.
I’m also an only child and my mom’s experience led her to go ahead and setup LTC care for her and dad. I think they did it through their financial advisor. They designated me as power of attorney, and when the time comes, I pretty much sign some docs and their LTC insurance kicks in at whatever facility I put them in. They’re both nearing 80, so that time will come sooner rather than later. They’re already doing that thing where they randomly gift my wife and I anywhere from $200 to $1000 at random intervals so we don’t have to pay taxes on everything when they’re gone.
Just a heads up, the current amount they could leave without paying taxes is around 26 million.
As a social worker (now director of operations) who works with the elderly (private agency that provides NON-MEDICAL caregivers in the home), I’d suggest people get a LTC policy.
They have their pros and cons (a good one will have some high premiums), but the pros outweigh the cons. Basically, if you don’t have one and have to pay privately/out of pocket…it’ll break you unless you’re just loaded.
Our agency’s private pay rate is $23/hr. For non-medical care. Some folks only use for a few hours a week and some 24/7. Do the math on THAT.
But the alternative is going into either an assisted living or long term care facility (which is somehow much less expensive, but they will also take everything you’ve got).
Elder care is simply outrageous and unfortunately for middle class people they simply fall through the cracks. Medicaid takes care of the less fortunate and if you’re loaded you can manage the high cost.
LTC policy. Expensive on the front end, but may save you a fortune on the back end. Although finding a good one nowadays isn’t easy.
Good luck to those of you dealing with family needing care. I understand how tough it can be, but that natural support is very valuable.
They have their pros and cons (a good one will have some high premiums), but the pros outweigh the cons. Basically, if you don’t have one and have to pay privately/out of pocket…it’ll break you unless you’re just loaded.
Our agency’s private pay rate is $23/hr. For non-medical care. Some folks only use for a few hours a week and some 24/7. Do the math on THAT.
But the alternative is going into either an assisted living or long term care facility (which is somehow much less expensive, but they will also take everything you’ve got).
Elder care is simply outrageous and unfortunately for middle class people they simply fall through the cracks. Medicaid takes care of the less fortunate and if you’re loaded you can manage the high cost.
LTC policy. Expensive on the front end, but may save you a fortune on the back end. Although finding a good one nowadays isn’t easy.
Good luck to those of you dealing with family needing care. I understand how tough it can be, but that natural support is very valuable.
Not if you have a LTC policy.
And I always encourage people to look for a neighbor/friend/family member/church member/ANYBODY that they can pay privately for far less money.
And we have 2 assisted living facilities that are far more reasonable (2,600/month, all inclusive - no nickel and dime crap). Memory care a bit more.
And I always encourage people to look for a neighbor/friend/family member/church member/ANYBODY that they can pay privately for far less money.
And we have 2 assisted living facilities that are far more reasonable (2,600/month, all inclusive - no nickel and dime crap). Memory care a bit more.
Also, if any of your loved ones are veterans there are a few different VA programs out there that can really help out as well. If you’re looking for in-home care.
Probably some out there that may help out with LTC and assisted living.
In fact, the VA has a few LTC facilities out there as well. New(ish) one in Radcliff, KY is very nice and well managed.
Probably some out there that may help out with LTC and assisted living.
In fact, the VA has a few LTC facilities out there as well. New(ish) one in Radcliff, KY is very nice and well managed.
They are probably just trying to get rid of assets or would like to see him benefit from the gift while they are living.
The current tax free gift stands at $16000/year/person.
You can give beyond that tax free it just starts to count towards the previously mentioned $26 million.
-having done that for a couple days a week for 2 separate 3-4 month periods(bro, sis, family friend covered the others)...it's untenable to say the least.
^while LTC is worth every penny... a whole lotta folks can't swing it. That's the rub.
-what's frustrating is when you have someone that can afford LTC...but wants to keep it in the family, just because. Difficult conversations.
It's not uncommon to have "sitters" come to your parent's home. You could also have a parent move in with a adult child and need a sitter. Another step is having a sitter at your parents assisted living facility. It might keep them out of ltc for a while.
I've only known one family to hire four nurses to cover 24 hr care. The husband eased into care with a day shift in 2000 and gradually ramped up. He passed in 2004. The wife really didn't need care at his passing, but didn't want to search for help when the time would come. She kept them on and she passed in 2008.
This was before the services that do this now. The family hired these people on their own.
That man would have been a Paddock baller.
Rogue - you don’t have to put him straight into a LTC facility. As long as he can still ambulate and feed himself, he can go into an assisted living facility. Huge difference in price. Although a memory care unit can get up there, it doesn’t come close to LTC rates.
Something to think about before he gets to the point where LTC is the only option. Not to mention the difference in the atmospheres/environments of each.
I’ve always said they are like snowflakes…..none of them are the same (premiums, what they cover, what qualifies to open up a claim, how much they pay out and for how long, elimination periods, and on and on).
Presently, insurance agencies aren’t big fans of these policies because of the high amount they may end up paying out.
A really good plan will probably run you close to 150/month. Or more. Depending on your age, of course.
Not an expert, tho. Talk to your insurance guy/gal.
I’m an insurance agent guy/gal, and I don’t know of anyone really writing LTC insurance. Not in the manner you’re thinking, anyways. You can buy a LTC policy that acts like an investment vehicle, and you’re essentially just saving $$$ into that. But in terms of paying a fairly low premium for 10-20 years that eventually pays for your care for a year or two down the road, there aren’t many options out there.
Not to sound like a dick, but this is why you save aggressively starting at a young age. You’re gonna need that $$$ down the road.
Not to sound like a dick, but this is why you save aggressively starting at a young age. You’re gonna need that $$$ down the road.
Where is that?
It’s ridiculous either way. And not all of us have PTI money. My dad has plenty but it would also drain him and he never wanted that.
I’m trying my hardest to keep him out of there.
With our assisted living facilities the generic indemnity is 3,000/month 100/day.
Sometimes they are lifetime, sometimes 2 years, sometimes have a lifetime max dollar amount not to be exceeded. They vary greatly.
In-home non medical services are similar (includes assistance with all the personal care needs and homemaking).
We are not a skilled LTC. All non-medical. I’m sure what you are writing is more platinum than what pays for us.
And we are mostly dealing with people in their 80’s who have had these policies for decades.
Hope that makes some sense. We just deal with the getting paid part, not the underwriting part.
Sometimes they are lifetime, sometimes 2 years, sometimes have a lifetime max dollar amount not to be exceeded. They vary greatly.
In-home non medical services are similar (includes assistance with all the personal care needs and homemaking).
We are not a skilled LTC. All non-medical. I’m sure what you are writing is more platinum than what pays for us.
And we are mostly dealing with people in their 80’s who have had these policies for decades.
Hope that makes some sense. We just deal with the getting paid part, not the underwriting part.
Rogue, I’m on my way to a big baseball game against Trinity tonight. Shoot me a message (??) or drop an email or something. Not wanting to put *too* much personal **** out there.
I’d love to converse man I could use the help.
Markrobertstephens@gmail