Live in a Nursing Home?

Should people give their home to their kids in the event they need to go into a nursing home?

QUESTION: Barb is 65 years old and healthy.  She’s been told to put her home in her children’s name in case she needs to live in a nursing home.  Is that a good idea?

ANSWER: This is bad advice.  The government is the only nursing home provider that cares if you have assets.  Medicaid will provide nursing home care for an elderly person if they’re broke.  If you want to go on welfare for your nursing home care, then put the house in your children’s names.
However, if the government finds out that you’ve put your house – and other assets – in your kids’ names to avoid paying for nursing home care, that’s a federal crime.  You will be criminally prosecuted if you do this.  People hide assets all the time in order to receive free nursing home care and it is morally and legally wrong.

What you should do instead is get long-term care insurance which will cover the costs of nursing home care should you need it.  You should do this the day you turn 60.