A new Nationwide Financial advisor survey released today found that half of advisors say they have clients asking about giving all their money to their children in order to qualify for government assistance in paying for long term care.
According to the
Currently, 49 percent of Americans who need long term care services depend on
While the Deficit Reduction Act of 2005 helped make transferring assets to children much less practical by implementing a five-year, look-back provision, instead of a three-year look back, "
* While Medicaid may pay the bill for nursing home care, you may not get to live where you wish. Nursing homes are not required to accept new patients who are on
* Consequences for spouse. Your spouse may not have the income needed to maintain his or her lifestyle.
"Many of our advisors tell us the most important aspect to their clients when planning for long term care is maintaining control," Carter said. "People who resort to repositioning or giving away their money often find they sacrifice control when having to ask for money that used to be theirs. They also give up control when protecting an inheritance for their children outweighs comfort in their final days."
Advisors say only 15 percent of their clients understand the potential costs of long term care well and over a third (35 percent) say their clients understand the costs "not at all well." People living to age 65 have a 70 percent chance of needing some type of long term care in their lifetime.2 The average cost per year for a nursing home is projected to be
Nationwide Financial launched the Personalized Health Care Assessment program to help advisors estimate their clients' health care expenses in retirement. The program uses proprietary health risk analysis and up-to-date actuarial cost data such as personal health and lifestyle information, health care costs, actuarial data and medical coverage to provide a meaningful, personalized cost estimate that will help clients plan for medical expenses.
"Instead of guessing, advisors can use this tool to provide a fact-based cost estimate based on their clients' health risk and lifestyle and build a plan from there," Carter said.