Nursing Home and

Asset Protectionpresented by

Commonwealth Advisory Group

Who is Commonwealth Advisory Group?

Commonwealth Advisory Group educates seniors and their families

on how to protect their assets when faced with a nursing home stay

Commonwealth Advisory Group also helps people pre-plan even if they don’t need

nursing home care right now so assets will be protected.We’re not an investment firm or financial planners

Why is planning so important?

Americans are Living Longer

By 2020 - 1 out of 10

Americans will be 65 years of age or older

Risk of Long Term Care

“A Study by the U.S. Department of Health and Human Services indicates that people of

age 65 face at least a 40% lifetime risk of entering a nursing home.”

HIAA LTC Guide

What does it Cost?

Type of Care

Nursing Home

Assisted Living Facility

Home Health Care

Average Cost

$8,000 - $12,000 per month

$2,000 - $5,000 per month

$10 - $24 per hour

Many people believe that their health insurance will cover the costs of nursing home care.

Unfortunately... that’s not always true.

Medicare Signed into Law in 1965

Pays for Medical and Related Expenses

Eligibility- Age 65 and Over

- Under 65Chronic illnesses or disabled

Part A “Hospital Insurance”

* Hospitalization* Skilled Care* Home Care (in certain circumstances)

* Hospice Care

Medicare

Part B “Medical Insurance”* Physician’s Services* Clinical Services* Home Care (in certain circumstances)

* Outpatient Services* Blood

What will Medicare Pay

toward Nursing Home Care?

Skilled CareDay 0 - 20 100%

Days 21 - 100 (with a deductible)

Qualifications3 Day Hospitalization

MEDICAID

Joint State and Federal Program

Pays Health Care once Criteria Has been Met

Single: $2,000

Married $109,560

Covers All Levels of Long Term Care

Specific provisions vary from state to state*maximum

MEDICAID

Qualifying for Care

Medical* Disability Test

Financial* Income

* Assets

ASSET QUALIFICATIONS

Non-Countable Assets• Home (sometimes)

• Automobile (sometimes)

• Personal possessions

• Burial Plot

• Irrevocable Funeral Pre-Arrangements

• Term Life Insurance

• Cash and Savings• Stocks and Bonds • Treasury Notes & T-Bills• Single Premium Deferred Annuities &

Most Fixed Annuities• Investment Property & Vacation Homes• Primary Residence (single person)

• Second Vehicle• Whole Life Insurance above a certain amount• Every Asset not specifically listed as non-countable

Countable Assets

Not only can non-countable assets be saved…

but planning can be done to preserve countable

assets as well...

IMPORTANT DOCUMENTS

• Durable Power of Attorney

• HealthCare Proxy

• Living Will

Medicaid Regulations tell us to do different

things in different situations

“Countable” Assets can be reclassified as “Non-Countable” assets and saved for the family

Husband & WifeA Spouse Needs

Nursing Home Care

AssetsHome - Primary Residence

Cash & Securities - $500,000

Husband & Wife

At Home SpouseNursing Home Spouse

$500,000

$109,560*

$390,440

Nursing Home Spouse’sIncome

Social SecurityPension

Primary Residence

*maximum

Single Person

$120,000

Nursing Home

To nursing home $1,250

*based on 82 y.o. female

Beneficiaries

OnMedicaid

PrePlanning

• Protect the home

• Protecting assets prior to nursing home stay

MoneyHouse

Children Mom and Dad

60 month wait

* Still own property * Full control of assets

What if Someone is over 65…Needs Assistance…

AndCurrently Doesn’t Need

Nursing Home Care

ESTATE PLANNING

Last Will and TestamentSupplemental Needs

TrustsProbate

We’re Here to Help

Commonwealth Advisory Group(800) 705-1415(781) 493-3002

We’re located at 3 Allied Drive – Suite 125Dedham, Massachusetts

Route 128 to Exit 14 – East Street Half way around rotary to Allied Drive

First building on right