With rare exceptions, every person with whom I have ever met who either has a loved one in a nursing home or in need of one, has begun the conversation by saying something akin to “we have heard that there is nothing we can do.” “Our family’s fate is sealed.” “What other steps could we possibly take?” Something like that.
Then, inevitably, some piece of misinformation will spring from their mouths. Some have information that would have been correct in the past but no longer is. Others have made egregious assumptions. Some are convinced they know how it all works because they’ve done hours’ worth of research on Google. Still others seem simply that they’re being lied to, with alarming regularity, by the professionals and friends in their employ and personal lives. Whatever the case, myths and falsehoods are unmistakably rampant.
This blog post is a repeat of what I have been saying on the radio, seminars and to anyone who will listen for 25 years. Why? Because after 25 years I am still hearing the same things.
- There is a 5 year look-back
- There is a 3 year look-back
- There is a 30 month look-back
- You can only have $2,000
- If you are married, you can only have about $120,000
- You have to get a divorce
- The state will take your home away
- The state will take your money away
- As long as you have a Will or trust, all will be ok
- As long as you have a Power of Attorney, all will be ok
- You cannot own a business
- You cannot own a rental
- You can only have $1,500 in life insurance
- You cannot have a funeral plan
- You can only be in a state owned nursing home
- You have to be in a Medi-Cal bed
- You have to cash in all your investments maybe even your IRA
- You should just give it all away
- You can only have one car
- You could never qualify for Medi-Cal, you have too much
- There is an asset limit
- You have to spend down
- You will never go to a nursing home
- If you have separate property and your spouse needs a nursing home, Medi-Cal will not count your property
- Medicare will pay for a nursing home
- Your Medicare Supplement will pay for a nursing home.
- It is all hopeless
The truth is that ALL of the above are myths. They are simply not true. Yet I see people almost every day who believe all or some of them and, in many cases, have made critical decisions based on them. The result is never positive and sometimes financially devastating.
If you are currently dealing with an aging loved one or if you know someone who is, have them contact me soon. There is always hope. Remember NO ONE needs to lose everything just because nearing the end of life they needed care.
