Unlocking the Power of Electronic Signature Legality for Funeral Leave Policy

How to eSign a document: electronic signature legality for Funeral Leave Policy

[Music] what you may have heard is that there is a big secret the nursing home doesn't want you to know before I tell you about the big secret I'd like to show you what the nursing home will tell you if you go in to talk to them about placing a loved one what I want to show you is a very typical scenario that comes into our office hairy husband and Wanda wife Harry has had a stroke and needs nursing home care because Wanda can't take care of him at home so the nursing home will say Wanda you're going to be at home so we're going to set the how society now you have about a hundred thousand dollars in CDs cash money market and investments Harry has an IRA with about a hundred thousand dollars Wanda has an IRA with about 75 thousand for a total of a hundred and seventy five thousand that really isn't worth a hundred and seventy five thousand because they haven't paid the taxes on it for income harry has about two thousand dollars a month and Social Security and pension Wanda has eight hundred dollars a month in Social Security she didn't work as long as she stayed at home raising the kids together they have about twenty eight hundred dollars a month and that's what they need to live on if they have a big expense it's going to come out of their investments years ago here you've taken out a life insurance policy that has a hundred thousand dollar death benefit it has a cash value of sixty thousand dollars Wanda and Harry also have prepaid funerals so the nursing home tells them well you have prepaid funerals so you're going to have to cash off this life insurance that means you're going to turn it in you're going to take that sixty thousand dollars in cash value and add it over here that means Wanda automatically loses forty thousand dollars the difference between the cash value and the death benefit so they add in the cash value and they look at this number and this number together and they say well you have a lot three hundred and thirty five thousand dollars the nursing home also tells Wanda that the average costs of the nursing home is eight thousand dollars a month Wanda doesn't have an extra eight thousand dollars in her income every month because she needs the twenty eight hundred dollars that they have to stay at home so the eight thousand dollars a month to take care of Harry is going to have to come out of their investments and they're going to spend that eight thousand dollars a month until they get to a magical number of two hundred forty seven thousand two hundred dollars this is called the division of asset number the state determines this number every year it doesn't matter what this number is the state will not talk to you until you get to this magical number so they're going to spend approximately eighty seven thousand dollars and then they get to the division of assets that's going to be ten to eleven months now they divide this number in half and they each get one hundred and twenty three thousand six hundred dollars for wanted to get any help paying for Harry's care she can never have more than a hundred and twenty three thousand dollars Harry is going to continue to spend down his assets until he gets down to two thousand dollars that's going to be another thirteen fourteen months the average time someone spends in a nursing home is three to five years unless they're there due to Alzheimer's Parkinson's dementia something along those lines then statistically it's seven to nine years so in this scenario it's been less than three years and Harry is now down Asset qualified to apply for Medicaid a couple of things happen when you apply for Medicaid first of all all of Harry's income goes to the nursing home every month except for $50 there are a few things that Medicaid doesn't even pay for such as hearing aids dental care and they'll only buy you a pair of eyeglasses over two years that leaves wandered with $800 a month she can't live on that by law I can have part of Harry's income transferred Towanda but her total income is going to be two thousand thirty dollars a month that's still about an $800 a month shortfall so Wanda's hoping against all hope that Harry is going to get better and come home so she's going to take that $800 a month out of what she needs to live on for the rest of her life and drain those assets slowly the other thing that happens when you go on Medicaid is the state starts keeping track of every dollar that they spend on you when you die they add it all up he's a nice big fat number and attach a lien to the house when Wanda realizes the hair isn't coming home she knows she has to stop this drain on her assets and she's going to have to sell the house when she goes to sell the house whatever the state has paid out on Harry's behalf the state's going to get paid back before Wanda gets a dime out of that house this is called Medicaid spend now this is called estate recovery and it's mandated by the federal government the big secret this doesn't have to happen to you and we don't want it to happen to you and the scary thing is this is just the beginning there's so much more to know this entire website and RSVP for upcoming free workshop seating is limited or call our office to schedule a free initial conference if you know someone who is about to place a loved one in their nursing home please share this video the more information that they have the more money they can save [Music] [Applause] [Music]