2. Nursing Home and Asset Protection presented by Commonwealth Advisory Group

3. Who is Commonwealth Advisory Group? Commonwealth Advisory Group educates seniors and their families on how to protect their assets when faced with a nursing home stay Commonwealth Advisory Group also helps people pre-plan even if they don’t need nursing home care right now so assets will be protected. We’re not an investment firm or financial planners

4. Why is planning so important?

5. Americans are Living Longer By 2020 - 1 out of 10 Americans will be 65 years of age or older

6. Risk of Long Term Care “A Study by the U.S. Department of Health and Human Services indicates that people of age 65 face at least a 40% lifetime risk of entering a nursing home.” HIAA LTC Guide

7. What does it Cost? Type of Care uNursing Home uAssisted Living Facility uHome Health Care Average Cost  $8,000 - $12,000 per month  $2,000 - $5,000 per month  $10 - $24 per hour

8. Many people believe that their health insurance will cover the costs of nursing home care. Unfortunately... that’s not always true.

9. Medicare Signed into Law in 1965 Pays for Medical and Related Expenses Eligibility - Age 65 and Over - Under 65 Chronic illnesses or disabled

10. Part A “Hospital Insurance” *Hospitalization *Skilled Care * Home Care (in certain circumstances) *Hospice Care Medicare Part B “Medical Insurance” *Physician’s Services *Clinical Services *Home Care (in certain circumstances) *Outpatient Services *Blood

11. What will Medicare Pay toward Nursing Home Care? Skilled Care Day 0 - 20100% Days 21 - 100 (with a deductible) Qualifications 3 Day Hospitalization

12. MEDICAID Joint State and Federal Program Pays Health Care once Criteria Has been Met Single:$2,000 Married $109,560 Covers All Levels of Long Term Care Specific provisions vary from state to state *maximum

13. MEDICAID Qualifying for Care Medical *Disability Test Financial *Income *Assets

14. ASSET QUALIFICATIONS Non-Countable Assets Home (sometimes) Automobile (sometimes) Personal possessions Burial Plot Irrevocable Funeral Pre-Arrangements Term Life Insurance

15. Cash and Savings Stocks and Bonds Treasury Notes & T-Bills Single Premium Deferred Annuities & Most Fixed Annuities Investment Property & Vacation Homes Primary Residence (single person) Second Vehicle Whole Life Insurance above a certain amount Every Asset not specifically listed as non-countable Countable Assets

16. Not only can non-countable assets be saved… but planning can be done to preserve countable assets as well...

17. IMPORTANT DOCUMENTS Durable Power of Attorney HealthCare Proxy Living Will

18. Medicaid Regulations tell us to do different things in different situations “Countable” Assets can be reclassified as “Non-Countable” assets and saved for the family

19. Husband & Wife A Spouse Needs Nursing Home Care A ssets Home - Primary Residence Cash & Securities - $500,000

20. Husband & Wife At Home Spouse Nursing Home Spouse $500,000 $109,560 * $390,440 Nursing Home Spouse’s Income Social Security Pension Primary Residence *maximum

21. Single Person $120,000 Nursing Home To nursing home $1,250 *based on 82 y.o. female Beneficiaries On Medicaid

22. PrePlanning Protect the home Protecting assets prior to nursing home stay Money House Children Mom and Dad 60 month wait * Still own property * Full control of assets

23. What if Someone is over 65… Needs Assistance… And Currently Doesn’t Need Nursing Home Care

24. ESTATE PLANNING  Last Will and Testament  Supplemental Needs  Trusts  Probate

25. We’re Here to Help Commonwealth Advisory Group (800) 705-1415 (781) 493-3002 We’re located at 3 Allied Drive – Suite 125 Dedham, Massachusetts Route 128 to Exit 14 – East Street Half way around rotary to Allied Drive First building on right