Short answer: Yes!
A lot of people are aware of the “5 year look back” asset protection technique (with proper planning and appropriate legal documents, assets including a home are protected against the significant cost of a nursing home if completed at least 5 years before entering the nursing home).
Please know that there are some circumstances where 100% of the home or a significant portion of the home can be saved even if there is no “5 year look back” asset protection plan in place. Here are 3 examples:
- Caregiver exemption: If an adult child of the parent has been residing with a parent and caregiving for that parent for at least 2 years (as certified by a doctor). The parent may deed the property to that child without penalty even AFTER entering a nursing home, thereby protecting the home 100%.
- Disabled child: If an adult child of the parent has a legal disability, the parent may deed the property (or gift other assets) to that child without penalty even AFTER entering a nursing home, thereby protecting the home and other assets 100%.
- Convert the home into a rental property: If the home is rented and produces a surplus rent, the family home can be saved. A lien will be placed upon the home, but depending on the net rent amount and the parent’s income, a $15,000 monthly nursing home cost can be greatly reduced. Example: the lien could be reduced to $4,000 a month more or less. In this situation, if the parent passed after one year, a $48,000 lien at the home would result as opposed to $180,000 private pay. If an eventual sale netted $448,000, the remaining $400,000 would flow to heirs and/or beneficiaries.
The above question, answer and examples illustrates that proper planning is always the safest and best course of action. But it also illustrates that no matter the circumstances and while in the mindset of an emergency situation, you will benefit from a no cost initial call and/or no cost initial detailed consultation.
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