Is $400k enough to get someone into assisted living?

[Anonymous]

My 82-year-old Dad lives alone and independently for now, but I can imagine him needing to move to assisted living in the next 1-3 years. He has $400,000 in investments and annual income of about $26,000 in a pension and Social Security. He rents, so there is no home equity to tap to pay care expenses down the road.

Is this financial profile good enough for him to get into an assisted living facility in the DMV in the next few years, or is this likely to turn into a problem with no good solution?

If he ever needs nursing home care I always figured that he could get admitted to a facility as private pay at first, then switch to a Medicaid bed once/if he exhausted his assets.

But Medicaid doesn’t pay for assisted living, of course, so I am trying to figure out what his options might be should he be unable to live independently but not in such poor health that he would qualify for nursing home care (and, once his finances had declined, Medicaid).

Thoughts?

[Anonymous]

You’ll have to do some research and see what the monthly costs are at the ones you’re considering. $10k a month is a realistic guess, but you can probably find a place for a bit less. He would get a little over three years at 10k per month.

[Anonymous]

Sure, but it depends on what kind of assisted living. I'd guess $5-8 for one living independently.

[Anonymous]

I think you are looking for a CCRC with medicaid beds. You have to be at the independent living level (initially) and have money to get into one of those.

[Anonymous]

Talk to an elder attorney. Shouldn’t he try to gift his $400,000 to you/spend down so he can become Medicaid eligible?

[Anonymous]

There are some that are subsidized but I don’t know the parameters for income/savings, eg Chesterbrook Residences in Falls Church and the Charles smith communities in Montgomery county.

[Anonymous]

There are 2 places on Olley Rd in Fairfax, and another, a new build, on Braddock RD (something "overlook") both zip codes at/near 22030. Fairfax, like many high income areas, seems to have options for low-income and then high income options with nothing in-between.

[Anonymous]

Anonymous wrote:Talk to an elder attorney. Shouldn’t he try to gift his $400,000 to you/spend down so he can become Medicaid eligible?

He would have to live a minimum of 5 years from the time he divested the 400K till he applied for Medicaid or else they would claw it back.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Talk to an elder attorney. Shouldn’t he try to gift his $400,000 to you/spend down so he can become Medicaid eligible?

He would have to live a minimum of 5 years from the time he divested the 400K till he applied for Medicaid or else they would claw it back.

Medicaid does not claw back. You spend it down so you have no money and then long term medicaid kicks in. You think you should have income and savings and that kind of government help? It's to help the poor. OP Dad is not poor.

OP, go to one that does not have a buy in and just monthly fees.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Talk to an elder attorney. Shouldn’t he try to gift his $400,000 to you/spend down so he can become Medicaid eligible?

He would have to live a minimum of 5 years from the time he divested the 400K till he applied for Medicaid or else they would claw it back.

Generally speaking you can get into a much nicer place with $400k than with nothing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Talk to an elder attorney. Shouldn’t he try to gift his $400,000 to you/spend down so he can become Medicaid eligible?

He would have to live a minimum of 5 years from the time he divested the 400K till he applied for Medicaid or else they would claw it back.

Medicaid does not claw back. You spend it down so you have no money and then long term medicaid kicks in. You think you should have income and savings and that kind of government help? It's to help the poor. OP Dad is not poor.

OP, go to one that does not have a buy in and just monthly fees.

Are you kidding? Medicaid will claw back if the applicant divested their funds to family/friends within five years (maybe longer now) of the time of application.

[Anonymous]

OP, my MIL has a fairly high level of care (wheelchair bound for the most part--she can get herself to the bathroom through) at a sunrise facility in richmond. She pays 6k/month for everything, which includes medication management, mobility assistance, meals, etc. When we looked into other facilities, rates for smaller rooms/studios were between 5-7k. Might be worth looking outside of the immediate area.

The reality is that he is 82, he enters AL at 84, with his income and investments, he could probably pay for 8-9 years of AL at about 6000-6500/month...you can always try some of the senior placement agencies and just talk to them about his income and needs to get a sense of what's realistic.

[Anonymous]

sorry immediate PP here--meant to say that studios/shared suites started at 3800 and up; 5-7k was the range at a fairly high level of care.

[Anonymous]

Since he’s healthy now, I’d likely be figuring out how to generate more income from assets and moving that 400k into a Medicaid Asset Protection Trust, ASAP. That said, you need to consult with an attorney who specializes in trusts and estates and elder law.

[Anonymous]

Anonymous wrote:Talk to an elder attorney. Shouldn’t he try to gift his $400,000 to you/spend down so he can become Medicaid eligible?

you think gifting all your money away so you are destitute so you can be medicaid eligible sounds ethical? i don't. have you heard of a lookback period?