Why It’s Risky To Spend Down Before ALTCS…
Why It’s Risky To Spend Down Before ALTCS…
Gail’s sister Donna lives in assisted living.
Donna had $55,000 in assets…
…but the gap between her income and cost of care was $4,000 a month.
Gail knew her sister would run out of money in less than 14 months.
So she reached out to us early…
…to plan ahead.
When we reviewed Donna’s situation…
…we discovered she had gifted $75,000 to her children over the last 5 years.
That changes everything.
If Donna had simply spent down her $55,000…
…and then applied for ALTCS…
…her coverage would have been delayed by 9 months due to a transfer penalty.
So the real question becomes:
How would her care have been paid for during those 9 months?
Because Gail planned ahead…
…we were able to protect Donna’s remaining assets…
…and qualify her for ALTCS immediately.
Gail used those protected funds…
…to cover the $4,000 monthly gap…
…until Donna’s ALTCS coverage kicked in.
After covering $36,000 in care…
…and paying our firm to handle the process…
…there was still $9,000 remaining.
That money is now being used to cover a $500/month private room upgrade…
…for the next 18 months.
Same situation.
Very different outcome…
…based entirely on planning.
If you have clients who have gifted assets in the last 5 years…
…and will likely need ALTCS in the future…
…have them call us today for a free consultation.
The earlier they plan…
…the smoother the transition from private pay to ALTCS coverage.
