Hide My Assets From Medicare

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Article Title:

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Hide My Assets From Medicare

Article Description:

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How the new Medicaid spend-down provisions can affect seniors and

what are the options to obtain government assistance for the

Medicare nursing home program.

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740 Words; formatted to 65 Characters per Line

Distribution Date and Time: 2007-01-18 10:24:00

Written By: Rocco Beatrice

Copyright: 2007

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Hide My Assets From Medicare

Copyright © 2007 Rocco Beatrice

Estate Street Patners, LLC

http://www.UltraTrust.com

Seniors Become Anxious about Spend-Down of Their Assets

In social functions, I always get asked about the new Medicare

nursing home qualifications. Seniors become very anxious about

having to spend-down their assets with no cap on the amount that

they can keep. This unlimited drain on their funds is of major

concern to the healthy spouse, and because the sick spouse can't

do anything about getting sick, they become more and more

depressed.

These folks are of the World War II generation and the market

crash of 1929 mentality. If you don't have the cash you don't

buy it. Most of them got a credit card only because they had to

pay their prescriptions over the mail.

Their health and well-being depends on knowing that they can tap

into their resources to get what they need or when their

grandkids come to visit they want to reward their visit with a

few bucks. My mother is of this vintage, and I know that when my

kids drop in for a visit, it makes her day.

She wants to give them something in return, not because it's an

enticement to come back, but she doesn't get out enough visits

and she values their time, especially in this day of instant

gratification with Ipods, Internet, cell phones, video, etc. and

because they valued their grandmother more.

How Do I Hide My Assets from Medicare Then?

So, how can I hide my assets from Medicare is relevant to their

lives. My answer is that if they did not do something as far back

as five years ago, chances are that trying to do something now,

could very well be considered a fraudulent conveyance in order to

defraud a potential creditor.

For example, if they were to put their son or daughter on the

deed of the house without adequate consideration, it would be

considered a " fraudulent conveyance " because they did it for

less than the fair market value, they received nothing back in

return. Or, if they did recognize that they gave away the house

to their children it was a taxable gift and taxes are due on the

transferor (the person giving the gift has to pay the tax, the

person receiving the gift is always after taxes).

But like many people they don't think it through in terms of

filing of a gift tax return or fraudulent conveyance. They just

do it for their convenience.

Restrictive Medicaid Spend-Down Provisions

The new Medicaid spend-down provisions are very restrictive. The

intention is that if you (the elderly) have assets, before you

qualify for nursing home assistance, they want you to become a

welfare recipient.

And that's what seniors are afraid to become. Their generation

never asked for assistance if they had a strong back, they worked

for their dignity. They don't want to become " welfare

recipients " it is a very humiliating concept to them.

Common Mistakes Committed by Seniors When Trying to Hide Their

Assets:

1. Naming their children as (Parent's name " and " Child's name)

(Parent name " or " Child's name) on their savings, checking,

investment accounts, or near cash accounts. THIS IS NOT A GOOD

IDEA. Too much risk, what if child gets sued, or divorced, or

worse dies. You open a new can of worms.

2. Give the house to the children. You name one or more of the

children. Again not a good idea. What if the children get sued,

divorced, or prematurely dies. There's too much risk.

3. Cash under the mattress, in between the walls, in the

basement, etc. Well it works, but unless you tell someone the

hiding place, then what? Or, leave the cash to lose interest or

depreciate with inflation?

In God We Trust

Trusts are the most common and useful legal devices. An

" Irrevocable Trust " works best for hiding your assets. Your

assets are RE-POSITIONED from you to an irrevocable trust. You

" legally " no longer own the assets.

This involves the actual transfer of assets to an independent

trustee who will independently manage and actually own the assets

for the benefit of all beneficiaries. This type of control over

assets is not new, it goes back to medieval times when landlords

went off to the crusades and left their lands in trust of monks

for when they returned.

There are specific laws and it's generally accepted by the

judicial system as a legal, acceptable method of protecting

one's assets for legal protection and tax minimization.

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Rocco Beatrice, CPA, MST, MBA, Award-winning

trust & estate-planning expert 71 Commercial

Street #150 Boston, MA 02109 tel: 508.429.0011

fax: 508.429.3034 Sign up for a FREE newsletter

& learn how you can reduce your taxes, protect

your assets & secure your privacy. Free

consultation. No Obligation, no risk, no sales

pressure. Click here: http://www.UltraTrust.com

http://www.UltraTrust.com/eldercare.html