Hide My Assets From Medicare

Seniors Become Anxious about Spend-Down of Their Assets





In social functions, I always get asked about the new

Medicare nursing home qualifications. Seniors become

very anxious about having to spend-down their assets

with no cap on the amount that they can keep. This

unlimited drain on their funds is of major concern to

the healthy spouse, and because the sick spouse can't

do anything about getting sick, they become more and

more depressed.



These folks are of the World War II generation and

the market crash of 1929 mentality. If you don't

have the cash you don't buy it. Most of them got a

credit card only because they had to pay their

prescriptions over the mail.



Their health and well-being depends on knowing that

they can tap into their resources to get what they

need or when their grandkids come to visit they want

to reward their visit with a few bucks. My mother

is of this vintage, and I know that when my kids drop

in for a visit, it makes her day.



She wants to give them something in return, not because

it's an enticement to come back, but she doesn't get

out enough visits and she values their time, especially

in this day of instant gratification with Ipods,

Internet, cell phones, video, etc. and because they

valued their grandmother more.





How Do I Hide My Assets from Medicare Then?





So, how can I hide my assets from Medicare is relevant

to their lives. My answer is that if they did not do

something as far back as five years ago, chances are

that trying to do something now, could very well be

considered a fraudulent conveyance in order to defraud

a potential creditor.



For example, if they were to put their son or daughter

on the deed of the house without adequate consideration,

it would be considered a "fraudulent conveyance"

because they did it for less than the fair market value,

they received nothing back in return. Or, if they did

recognize that they gave away the house to their

children it was a taxable gift and taxes are due on the

transferor (the person giving the gift has to pay the

tax, the person receiving the gift is always after

taxes).



But like many people they don't think it through in

terms of filing of a gift tax return or fraudulent

conveyance. They just do it for their convenience.





Restrictive Medicaid Spend-Down Provisions





The new Medicaid spend-down provisions are very

restrictive. The intention is that if you (the

elderly) have assets, before you qualify for nursing

home assistance, they want you to become a welfare

recipient.



And that's what seniors are afraid to become. Their

generation never asked for assistance if they had a

strong back, they worked for their dignity. They don't

want to become "welfare recipients" it a very

humiliating concept to them.





Common Mistakes Committed by Seniors When Trying to

Hide Their Assets:





1. Naming their children as (Parent's name "and" Child's

name) (Parent name "or" Child's name) on their savings,

checking, investment accounts, or near cash accounts.

THIS IS NOT A GOOD IDEA. Too much risk, what if child

gets sued, or divorced, or worse dies. You open a new

can of worms.



2. Give the house to the children. You name one or more

of the children. Again not a good idea. What if the

children get sued, divorced, or prematurely dies. There's

too much risk.



3. Cash under the mattress, in between the walls, in the

basement, etc. Well it works, but unless you tell

someone the hiding place, then what? Or, leave the cash

to lose interest or depreciate with inflation?





In God We Trust





Trusts are the most common and useful legal devices. An

"Irrevocable Trust" works best for hiding your assets.

Your assets are RE-POSITIONED from you to an irrevocable

trust. You "legally" no longer own the assets.



This involves the actual transfer of assets to an

independent trustee who will independently manage and

actually own the assets for the benefit of all

beneficiaries. This type of control over assets is not

new, it goes back to medieval times when landlords went

off to the crusades and left their lands in trust of

monks for when they returned.



There are specific laws and it's generally accepted by

the judicial system as a legal, acceptable method of

protecting one's assets for legal protection and tax

minimization.



Rocco Beatrice, CPA, MST, MBA,

Award-winning trust & estate-planning expert

71 Commercial Street #150 Boston, MA 02109

tel: 508.429.0011 fax: 508.429.3034

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