estate protection
my father and mother are both in good health are 72 and 77. Their combined estate is worth in excess of 1 million dollars and they have 3 daughters so we understand their should not be tax implications but what should they do to protect their assets should they ever have to enter a nursing home. I understand the lookback period for medicaid is 5 years currently. Are they able to transfer assets into their daughters names but still have access should they need it?
Re: estate protection
A million dollars isn't what it used to be. Can they make a transfer? Perhaps. But is it a good idea? Perhaps not.
This is actually a very complex question. The answer depends on the elders' goals; their current and possible future health; their current and future income streams, the nature of the assets, the income tax implications of any transfers (and contrary to what you think, there are almost ALWAYS possible tax implications for someone!!); whether any of the children may be facing a divorce, bankruptcy, litigation, or incapacity; whether they have long term care insurance; and so forth.
A good elder law attorney will take these and other factors into account and then advise about the pros and cons of any transfer. If the transfer is desired, common options may include outright gifts, creation of irrevocable trusts or transferring real estate and retaining a life estate.
I have practiced elder law for over a decade. Your parents are welcome to call my office and schedule an appointment for a more comprehensive review of their issues, rights and options.
