Liquidating assets medicaid what is liquidating stock

This strategy must be crafted carefully, because you cannot just start taking withdrawals in any amount, you have to take RMD per IRS life expectancy charts for tax purposes.IRS instructions for how to calculate required minimum distributions can be found by clicking on the link.For millions of elder Americans, a temporary or permanent stay in a nursing home is a real possibility.The expenses associated with receiving care in a nursing home, however, can prove financially disastrous for the patient's family.While hiding assets from the government is a criminal offense, you can legally shelter certain assets and avoid using them to pay for the high cost of a nursing home stay.Give monetary gifts to your loved ones before you get sick.

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For lawsuit-proof wealth, you need an irrevocable trust or another protective entity.Unfortunately, this leaves you without the financial security you previously enjoyed if you decide to return home.It also absorbs money you might prefer that your loved ones inherit after you pass away.By converting countable assets into exempt assets -- for example, by selling off stocks and upgrading all the appliances in your home or purchasing jewelry for your spouse -- you benefit from the assets and come closer to meeting requirements.Paying down debt lets you reduce your countable assets and helps protect your spouse.The goal of every elder law attorney that handles Medicaid planning cases is to take countable resources and turn them into non-countable resources in accordance with Medicaid law and regulations.

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