Millions of baby boomers are coming of age. It has been well documented, particularly in recent years, that these individuals will soon have a significant impact upon our medical and long-term care infrastructure. Often overlooked, however, is the fact that baby boomers are also parents and caregivers to millions of non-elderly disabled children. How will the parents' aging impact the care and wellbeing of their children?
The decision to transfer one's residence is often an integral part in asset protection and wealth preservation planning. This is especially true if there is concern that long term care costs (nursing home and/or home care) may dissipate his or her life savings in the future. Every potential transfer of one's home raises issues regarding estate and gift taxes, capital gains taxes, as well as Medicaid eligibility. While the following provides insight regarding the various types of transfers available (and their consequences), a thorough review of all options should be made with an experienced elder law attorney prior to making a final selection.
The RAND Corporation estimates in a recent study that the monetary cost of dementia in the United States ranges from $150 billion to $215 billion annually. According to their findings, the cost of dementia to the nation is greater than that of heart disease or cancer. Further, dementia care costs are expected to double by 2040.
Elder law attorneys have made significant strides in the past two decades educating the public as well as the legal profession on the importance of seniors engaging in advance planning to protect their life savings from the costs of long term care. While it appears that most have become more knowledgeable on the subject (and virtually every senior has heard of the “five year rule”), there are still a significant number of seniors who have not implemented any advance planning strategies.