Ian Mausner – Consider the Twilight Years

Ian Mausner is an individual who has a long history as a financial adviser, and people who are in his position often work with clients who are looking ahead toward their senior years. Retirement planning is very important if you want to be able to put your working years behind you and enjoy your active senior years. At the same time, you should also look ahead toward the period of time that will come after the golden years.

Ian Mausner

When you have been able to take care of your own affairs throughout your life, it can be hard to imagine a time when you will need help with your activities of daily living. Though this is understandable, the majority of senior citizens will eventually need living assistance. Many will reside in nursing homes, and these facilities are extremely expensive. When you hear about nursing home costs, you may assume that you don’t have to worry because you will be covered by Medicare. Nursing home care is considered to be custodial care rather than medical or convalescent care. The Medicare program does pay for convalescent care.

People often ask financial advisors about possible solutions. Medicaid is another government health insurance program, and it does pay for nursing home care. Ian Mausner lives in California, and in California, the program is called Medi-Cal. This is a need-based program, and it is only available to people who can prove that they have very limited financial resources. The limit on countable assets is just $2000. That’s the bad news, but the good news is that many things that you own do not count. Your home is not considered to be a countable asset, and there is no equity limit in California. One can maintain possession of one vehicle that is used as a primary form of transportation, and personal effects and household belongings are not counted toward this $2000 limit. Your wedding ring, your engagement ring, and any heirloom jewelry that you may have are not counted, and you can have unlimited term life insurance. This is life insurance that does not have a cash value.

It is possible to give gifts to your loved ones before you apply for a Medi-Cal to remove assets from your own name so that you can qualify for coverage if you need long-term care. However, there is a Medi-Cal look back. You have to complete the gift giving at least 30 months before you apply. If you violate this rule, your application will be denied at first until you wait out a penalty period.

An adviser like Ian Mausner may touch upon the value of a Medi-Cal trust if a client was to ask about nursing home asset protection. You could convey assets into this type of trust as you aim toward future Medi-Cal coverage. The trust would be irrevocable, so you would not be able to access the principal. However, you would be able to receive income that is earned by the trust without jeopardizing future Medi-Cal eligibility.