Case Studies

Single Male- Age 77- William
He has been living with Parkinson's for many years.They have an old, large, beautiful home where the family comes and stays and spends a lot of time during the Summer. It is his pride and joy. It is really important to William and his children to keep the house in the family.

Shortly after his Parkinson's diagnosis, William's wife Judy was diagnosed with breast cancer. They decided to do Pre-Planning to get their affairs in order and protect assets against some of the risks they feared. 

GOAL: Get financial and medical legal affairs in order before either spouse's health declines. Protect their beloved home for a healthy spouse, and then transition to the next generation. Protect savings for a healthy spouse in the event either requires Nursing Home or other expensive care. Obtain Medicaid eligibility as quickly as possible if/when either of them need care. 

Details:
William's Income:   $2,200/mo
Judy's Income:       $1,600/mo
Assets excl home:  $245,000
PVA Home Value:   $400,000

We got them scheduled with an Elder Law Attorney that established their Powers of Attorney, Health Directives, and set up both revocable and irrevocable trusts for the couple. Their home was moved into the trust. After 5 years of the home being in the trust, it would be fully protected from any Medicaid Lookback period. 
 
How we helped:
  • They both had $20,000 Whole Life Insurance Policies that they have owned for years. We helped them move these policies into their irrevocable trust so that they are protected and the cash value would not cause issues for them if they need to apply for Medicaid in the future.
  • Within their assets, $120,000 was after-tax savings, and $125,000 was IRA/401K's. We moved 100,000 of the Non-Qualified money into their Irrevocable trust by Purchasing a deferred Annuity. After 5 years this money would be protected from Medicaid Look-back. This also left them $20,000 in liquid savings for emergencies.

Result:
  • When Judy was hospitalized from her illness, they had their affairs in order. When William was not able to be by her side, her daughter was able to be there and speak for her in the hospital as she was Healthcare Power of Attorney.
  • Judy passed quickly, and between William, the children, the grandchildren, and some in-home hired help, they were able to affordably allow her to spend her last moments at their home without wiping out assets for William to live on.
  • William lived in the home alone for years and enjoyed hosting the family for extended weekends and many week-long (or longer) visits in the summer months. After he experienced some falls and with some family persuasion, he knew he could no longer live in his beloved home. 
  • Since it had been 5 years since their original planning, the home and the annuity, now valued at $127,000, are not considered countable assets when evaluating Medicaid eligibility. 
  • William's 401K has been turned into an income stream and the assets within are protected during his lifetime. If anything is left upon death, it could potentially go to his heirs.
  • William had $27,000 in liquid savings outside of his trust. To qualify for Medicaid he needs to get that amount down to $2,000. We helped him purchase a Funeral Expense trust for $15,000 which protects that money and allows his Whole Life Policy in his Trust go to his children for taxes/expenses related to the family house they will inherit from the trust.
  • William is allowed to keep $2,000 so that left $10,000 to spend-down prior to being Medicaid eligible. He was able to spend that $10,000 on a few home repairs, some Elder Law attorney fees to assisting with his Medicaid application, and some healthcare expenses.  
  • After the spend-down William was able to get into a Nursing Home as Medicaid-Pending Status. His home and some assets are protected and will transition upon his death.
  • His son, his Trust Executor, is able to assist William continue his dignity and the joy in providing Christmas and birthday gifts to his children and grandchildren from his protected assets in the trust.
  • William is able to participate in the twice a week social hour at the facility and can enjoy one or two beers with other participating residents without worrying about running out of money.  
  • When William passes away, his named beneficiaries in his trust will inherit the home at a stepped-up tax basis as well as any other assets remaining in the trust.

If William and Judy would not have done their pre-planning, their beloved family home may have needed to be sold or could have potentially been taken by Medicaid recovery upon William's death. By planning ahead, they could protect assets prior to William needing care, and while he would have preferred to stay in his home, he is now living with dignity, able to enjoy some social activities both at and outside of the facility, and still has the assets available to provide give birthday and Christmas presents to his loved ones which is important to him.

Upon his death the family will inherit the home and likely some other assets to help with property taxes and upkeep and be able to enjoy the property for years to come as their parents wanted.

Note: Names have been changed to protect the identity of those involved in the cases. Also, while the numbers included are real, they have been rounded for ease of summarizing these cases.
(859) 491-5100​
217 Fairfield Avenue
Bellevue, KY 41073​
Click Here to Email Us
Long Term Care Quote
Get a quote for long-term care insurance
Other Case Studies
Read about actual cases where individuals were able to preserve assets and get the care they needed. Note; these are just a few examples and there are many other potential scenarios to consider.

Note: Names have been changed to protect the identity of those involved in the cases. Also, while the numbers included are real, they have been rounded for ease of summarizing these cases.