Financial Futures

Typically, the first question that my clients ask when they are faced with the reality of caring for a loved one is, "How do I protect my assets from the nursing home?" The answer is quite simple: Make sure that you have sufficient funds with which to pay for nursing home care should the need arise.

Who's Responsible for Nursing Home Costs?
Audrey is concerned that if her mother goes into a nursing home, the condo in which she lives would have to be sold to pay the bills. Typically, when an outstanding debt is owed to a nursing home or the Department of Welfare, the creditor will place a lien on the home rather than force a sale of the premises. The lien protects them from the possibility that the home will be sold and the proceeds distributed to others without reimbursement of the debt. If the property is sold, then the closing agent automatically pays off the lien prior to distributing the balance of the sale proceeds.

Here, the condo was purchased with Audrey's money and should be free from her mother's creditors, including a nursing home.

Life Insurance
But what if something happened to Audrey? Her mother is fairly self-sufficient now, but who would take care of her if Audrey couldn't? Would she be willing go into a nursing home? If so, how would she pay for it? Audrey's husband needs constant attention and would certainly need to be admitted to a medical facility if Audrey couldn't care for him. If she can afford it, Audrey should consider buying life insurance. It would guarantee that funds would be available to pay for the care that her husband and mother need if she were unable to provide it. This only makes sense if the cost of the insurance is not prohibitive based on Audrey's current age and financial situation.

A Final Note
Finally, in regard to Audrey's husband's surgical procedure gone awry, she may want to consult with an attorney. I am not condoning litigation, but if a doctor or any other professional is negligent and that negligence causes you damage, then he or she should be held accountable. I recognize that the doctor may have done everything reasonably possible and cannot be blamed for Audrey's husband's resulting condition. The important point is that there is a time limitation in which to bring action against those at fault. If a wrong has been committed, then Audrey should contact an attorney as soon as possible to help her determine if she should proceed and how action should be taken.

Expert Advice for Audrey
Protecting Assets
Long Term Care Insurance
Medicare and Medicaid
Estate Planning Documents
Elder Care Attorneys, from our sponsor, Merrill Lynch

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