By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Where in the world are babies at the lowest risk of dying?
    Where in the world are babies at the lowest risk of dying?
    May 13, 2025
    Philippine president’s allies on course for most available Senate seats in election 
    Philippine president’s allies on course for most available Senate seats in election 
    May 12, 2025
    Zelenskyy agrees to meet Putin
    Zelenskyy agrees to meet Putin
    May 12, 2025
    Pope Leo calls for end to polarising ‘war of words’ in address to media | World News
    Pope Leo calls for end to polarising ‘war of words’ in address to media | World News
    May 12, 2025
    Assessing Putin and the ‘Axis of Authoritarians’
    Assessing Putin and the ‘Axis of Authoritarians’
    May 12, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Quantum computing a risk to Bitcoin network: Blackrock
    Quantum computing a risk to Bitcoin network: Blackrock
    May 13, 2025
    Will Bitcoin hodlers be the reason more countries adopt wealth taxes?
    Will Bitcoin hodlers be the reason more countries adopt wealth taxes?
    May 13, 2025
    Is VET poised for a 300% surge?
    Is VET poised for a 300% surge?
    May 12, 2025
    Cardano bulls set eyes on  as institutional adoption grows amid BTC integration
    Cardano bulls set eyes on $1 as institutional adoption grows amid BTC integration
    May 12, 2025
    Sonic Labs Announces M Token Sale to Galaxy for U.S. Expansion
    Sonic Labs Announces $10M Token Sale to Galaxy for U.S. Expansion
    May 12, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Can a Nursing Home ‘Take Our IRA?’ My Wife and I Are Elderly. We Have a $100K IRA and a Trust to Protect Our Assets.
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > World News > Can a Nursing Home ‘Take Our IRA?’ My Wife and I Are Elderly. We Have a $100K IRA and a Trust to Protect Our Assets.
Can a Nursing Home ‘Take Our IRA?’ My Wife and I Are Elderly. We Have a 0K IRA and a Trust to Protect Our Assets.
World News

Can a Nursing Home ‘Take Our IRA?’ My Wife and I Are Elderly. We Have a $100K IRA and a Trust to Protect Our Assets.

Published August 14, 2023
Share
9 Min Read
SHARE

How Do We Protect Our IRA From the Nursing Home?

My wife and I are elderly. I have an individual retirement account (IRA) worth about $100,000, and we have a trust set up through our children to protect our assets. If one or both of us have to go into a nursing home, can they take our IRA? What do we need to do to protect it?  

-Dawn

Long-term care (LTC), which may include nursing home stays, is expensive and can quickly suck up savings you may have intended for something else.

How do you prevent that from happening? The specific answer depends on variables you didn’t reveal. But in my experience, when people talk about “protecting” assets from LTC costs, they often have Medicaid in mind. So what does that look like? (And if you need more help planning for long-term care costs, consider working with a financial advisor).

Qualifying for Long-Term Care Through Medicaid 

Medicaid is often viewed as a “safer” option for long-term care for the simple reason that it is less expensive and therefore less likely to drain your assets. But Medicaid eligibility is governed by strict income and asset limits. While those limits vary by state, having a $100,000 IRA will likely disqualify you from Medicaid coverage.

So now you are faced with a paradox: The assets you want to save by means of cheap healthcare are an obstacle to getting cheap care in the first place.

It is at this point that an estate attorney or well-meaning friend might suggest you rearrange your assets in such a way as to exempt them from the eligibility limits. The idea is to make yourself less wealthy on paper to qualify for Medicaid without actually giving away your assets.

If this sounds tricky, that’s because it often is. For one thing, many states use a five-year lookback period when determining Medicaid eligibility. This means that if you do any fancy asset-shuffling in the five years before applying, your efforts will have been in vain. (And if you need help determining whether you’re eligible for Medicaid, consider matching with a financial advisor.)

3 Ways to Protect Your Assets from Medicaid 

How Do We Protect Our IRA From the Nursing Home? 

How Do We Protect Our IRA From the Nursing Home?

If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

If you’re willing to plan ahead and do your homework, there are a few options for relocating your assets so that you can potentially qualify for Medicaid.

  • Annuities: Any money you put into a “Medicaid-compliant” annuity will not count against your asset limit and will be exempt from the lookback period, as well. The catch – and it’s a big one – is that the money is totally locked up, except for whatever periodic payment you receive from the annuity. And that payment will count against the income eligibility limit.

  • Home equity: In most cases, any equity you have in your primary residence will not count against the Medicaid asset limit. So you could protect your assets by putting them toward your mortgage or even upgrading your home. But the lookback period also applies here, and in some states, the government may claim part of your home equity to recoup care costs after your death.

  • Trusts: You mentioned having a trust already set up, but there is a type of trust designed specifically for this situation. Putting your money into a Medicaid asset protection trust (MAPT) effectively hands it over to someone else, so it is technically no longer yours and does not count against your Medicaid eligibility. Just remember that the handoff must be completed five years before you go on Medicaid.

As you may notice, the common problem with these methods is that they drastically restrict what you can do with your assets. And by taking away your financial independence, to some extent they leave you poor in reality – not just on paper. (And if you need help executing one of these strategies, consider matching with a financial advisor.)

That may be preferable to the alternatives, but it depends on another variable: Why do you want to protect your assets from long-term care expenses, including nursing home costs, in the first place?

Is Cheap Care Worth it?

How Do We Protect Our IRA From the Nursing Home? 

How Do We Protect Our IRA From the Nursing Home?

The options discussed above often make the most sense as estate planning measures. If you do not expect to use your assets yourself and are instead concerned about preserving them for your heirs, perhaps it does not matter if they get locked up in a trust, an annuity or your home equity.

But there is still an elephant in the room. Remember that these asset-protection techniques will ultimately leave you with cheap healthcare and long-term care. And that may impact your access to care and its overall quality.

Ask yourself this: What are you trying to “protect” your money for? Is it worth all the hoop-jumping and the risk of mediocre care in your twilight years? It may be if you want to leave a sizable inheritance behind or save assets for your spouse. (And if you need more help with estate planning, consider working with a financial advisor.)

Next Steps

A middle-ground solution be the best course of action. Something like LTC insurance or an “aging-in-place” strategy may not completely protect your assets from long-term care costs. But such an option could reduce those costs while still providing the care that preserves your quality of life.

Remember, the point of saving money is ultimately for your well-being and that of your loved ones – not just to save it for its own sake.

Tips for Finding a Financial Advisor

  • Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

  • Consider a few advisors before settling on one. It’s important to make sure you find someone you trust to manage your money. As you consider your options, these are the questions you should ask an advisor to ensure you make the right choice.

Graham Miller, CFP® is a SmartAsset financial planning columnist and answers reader questions on personal finance topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.

Please note that Graham is not a participant in the SmartAdvisor Match platform. Find more money insights from Graham at the Wiegand Financial blog.

Photo credit: ©iStock.com/shapecharge, ©iStock.com/Ridofranz

The post Ask an Advisor: Can a Nursing Home ‘Take Our IRA?’ My Wife and I Are Elderly. We Have a $100K IRA and a Trust to Protect Our Assets. appeared first on SmartAsset Blog.

#Nursing #Home #IRA #Wife #Elderly #100K #IRA #Trust #Protect #Assets

TAGGED:100KAssetselderlyHomeIRANursingprotecttrustWife
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article B&Q apologises after books titled ‘White Supremacy’ appear in product listing B&Q apologises after books titled ‘White Supremacy’ appear in product listing
Next Article Mixlab adds to veterinary pharmacy footprint following M Series A extension Mixlab adds to veterinary pharmacy footprint following $10M Series A extension
- Advertisement -

Latest Post

Quantum computing a risk to Bitcoin network: Blackrock
Quantum computing a risk to Bitcoin network: Blackrock
Cryptocurrency
Where in the world are babies at the lowest risk of dying?
Where in the world are babies at the lowest risk of dying?
World News
Will Bitcoin hodlers be the reason more countries adopt wealth taxes?
Will Bitcoin hodlers be the reason more countries adopt wealth taxes?
Cryptocurrency
Philippine president’s allies on course for most available Senate seats in election 
Philippine president’s allies on course for most available Senate seats in election 
World News
Is VET poised for a 300% surge?
Is VET poised for a 300% surge?
Cryptocurrency
Cardano bulls set eyes on  as institutional adoption grows amid BTC integration
Cardano bulls set eyes on $1 as institutional adoption grows amid BTC integration
Cryptocurrency
- Advertisement -

You Might Also Like

Voters go the polls in second round of snap election
World News

Voters go the polls in second round of snap election

July 7, 2024
Kamala Harris has a laugh at school shooting victim’s expense (VIDEO) — RT World News
World News

Kamala Harris has a laugh at school shooting victim’s expense (VIDEO) — RT World News

September 20, 2024
Girl stabbed in London tourist hotspot, Leicester Square, was Australian, DFAT confirms; Ioan Pintaru charged with attempted murder
World News

Girl stabbed in London tourist hotspot, Leicester Square, was Australian, DFAT confirms; Ioan Pintaru charged with attempted murder

August 14, 2024
New variant spreads across world, here’s what we know so far
World News

New variant spreads across world, here’s what we know so far

August 15, 2023

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?