Serious question: How do people afford nursing homes? I'm looking at the cost for my inlaws to go to a CCRC community. The PV is like 2MM and that's assuming that one lives for 8 years and the other for 20. 2MM is substantially greater than the median net worth of someone over 75 and even substantially greater than the average net worth (which of course is skewed by some very wealthy boomers). Am I missing something? How do people with a few hundred thousand in net worth live in their old age?
where did you read that? I got similar answers but I figure there’s got to be an alternative to CCRC’s that cost as much as they do.
The answer was from Bing Chat. Here are links it reported. https://www.humangood.org/resources/senior-living-blog/can-i-afford-a-ccrc https://health.usnews.com/senior-care/caregiving/articles/continuing-care-retirement-communities https://www.care.com/c/continuing-care-retirement-community-cost/ https://www.newretirement.com/retir...t-are-continuing-care-retirement-communities/
Thank you. Unfortunately it still doesn’t answer my question but I think I will have to find another way to answer it as search is filled with advertisements posing as helpful articles. The middle two links you posted are the only links I have read that aren’t written by someone selling this service. Google search only had links from sites selling these types of homes.
Medicaid with a Medicaid Asset Protection Trust is another possibility, but the trust would need to be established at least five years before applying for Medicaid. https://mylifesite.net/blog/post/medicaid-trusts-continuing-care-retirement-communities/ Medicaid Trusts and Continuing Care Retirement Communities https://www.elderlawanswers.com/pros-and-cons-of-a-mapt-19281 Pros and Cons of a Medicaid Asset Protection Trust
I talked to a friend that went through this and I think my wife has been steered into luxurious options that aren't worth the marginal dollars.
My experience in this area is limited to how my sister is handling the affairs of her brother-in-law who lives in a nursing home in New Jersey. He doesn't have a trust, and my sister, who has both medical and financial power of attorney, has been selling his assets (house and stocks) to pay the ~$13,000 monthly total cost. If he lives a year or two more, he will run out of assets to sell. My sister then expects to apply for his Medicaid. She worries his Medicaid could be denied for reasons like not enough documentation. And Medicaid would pay a lot less than the cost of his nursing home, so he would probably have to move.
I talked to my friend who had a similar fear with his dad. The CCRC’s are a good option but they are crazy expensive. They are the Lexus’s of the industries when there are plenty of Toyotas. We are likely to go through a similar route as your sister. Go to a rent based facility and wait for some specific Medicare issues to resolve with my father in law and then evaluate. And then see how Medicaid works and supplement if we have too.