Presentation 5 oct 2016
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Transcript of Presentation 5 oct 2016
Texas Longterm Care Academy
A Lou Talk - "Many ways to pay for LTC"
A Practical Realist and Advocate Caretaker in Chief and Consultant
The Purpose of LouTalks
To Help you early enough to:
Seek to understand Eldercare Quicksand risk
Discuss the long term future of your Family
Explore actions to help preserve Family Money
Seek Comfort and Dignity as you age
The Eldercare Predicament is a Reality ShowNo One Wants to Watch or Face
Complicated - Many moving parts and details
Troubling - Rules and regulations hard to navigate
Expensive - Costs can ruin the Future of your Family
Now What ?
Parents Daughter
Home Care- Assisted Living - Nursing Home
Hospitals and Doctors
What and Where of Eldercare
They are about Trying to Cure and Stabilize with "Medically Necessary" Treatment
Medicare Pays for it
This is Care without "Medical Necessity" It is Custodial Care often progressing to
greater need for assistance with Daily Living needs You or Welfare Pay for it unless you plan
Financial Risk of CARE A Potential Disaster for your Family
What are the RISKS and Reality
People over 65 will have: Arthritis 50 % -Heart Disease 30 %
Top 5 reasons for Care : Stroke, Dementias, Arthritis, Injury, Vascular
How long will care be needed ? Average is 2.5 years - 58% need longer
42% need 1 year or less (each time). Progressive Alzheimers average is 6 years
Why are stats confused?
Who Pays ?Not Medicare- Not Disability You Pay unless you Plan
Meals on wheels, rides
Spend down, self fund
State, Federal program
The Reality of Paying for Care at Crisis Time
Your Resources, Family and FriendsCDs - Penalty for unscheduled withdrawal Reverse Mortgage - Expensive, spouse to live thereBridge Loan- 12% until your house sells... or notSell Your House - Millennials don't want or afford itLife Insurance - use cash value or sell it at a loss
Reality ... Crisis means - Desperate
The big $$ losers will be your Heirs
Investment Accounts - Down market selling
Welfare Medicaid - The Five year Reality
Plan or be forced to Qualify at Crisis time
Different ways for Spouse or No SpouseSpouse can live in house and retain $115K
plus an Annuity (SPIA)to provide monthly expenses.If No Spouse, forced to spend down assets to Qualify
Your savings for Retirement and other Assetswill have to be used first before you can Qualify
You need to think about Protection from spending not Growth of assets
Without a Plan, this snake will bite you bad !? Where Assit, NH
The Reality of Paying for Care
Traditional LTC and Short Term CareLTC - health exam, $2000 per year at age 60,
will spend $50K by age 85 $5000 benefit per month for 3 years, 90 day wait
STC- health questions, $1000 per year at age 60 Cash for up to 1 year for nurse visits
Texas LTC Partnership - same as traditional with protection from Medicaid spend down (8 Companies in TX)
The Thud Factor - after paying for years you "thud" the floor and die with a heart attack- Your paid in money is gone !
Reality
Asset Based Longterm Care Annuity and Life Ins Strategies
Reposition some or all of your IRA or other assets
Use IRS1035 asset transfer rule to save taxes when spending for LTC expenses
Remember ... these are guaranteed contracts that do what they say they will
Several "A" rated companies offer these plans
Many offer 3 to 5 times multipliers to provide more LTC coverage
The Time Will Never Come Until it Does
Consider :Your ability to understand complex matters
will decline rapidly after age 65Once diagnosed with a chronic condition - coverage
is hard to find and costs soarWhen will the 5 year Medicaid Look Back apply to you ?
Have the conversation with Family and decide when and with whom to shield your assets
Either protect your money with a Plan or shield it to qualify for Medicaid
Why is that Lady pulling her hair out ?
C. A. R. E.Can't Always Rely on Expectations
When shopping for care facilities consult dads.com the State authority
on types and ratings for care.
Payingforseniorcare.com
Avoid National TV ad sites !!