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What assets will be taken from me to pay for assisted living care?

When moving into assisted living what if you have a bank account and life insurance? I live in independent living home. Question is if I have to move to assisted living what will be taken to pay for my care. I have a small checking account, life insurance, and an annuity.
Status: Open    Aug 27, 2015 - 09:06 AM


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Aug 27, 2015 - 11:39 AM

You will be required to pay whatever the monthly charge is for room, board and the cost of care. If you current income does not cover this cost your life insurance my have some value (called a life settlement) that can be used to help you pay for your care. If you are still short you may need to look into Medicaid or VA benefits.

Source: Ted Capuano

Aug 27, 2015 - 01:01 PM

An Assisted Living community will require you to pay the entire monthly charges for your care. Your income of your annuity and social security (if you are collecting) would go towards that cost. If your life insurance enables you to borrow against its value, you may be able to take a loan. You could sell your life insurance policy. If the independent living home you reside in is owned by you, that could be a source of funds. Or if it is a community and you have a security deposit there if you move out, you could use those funds? Then, if there is a shortfall, I suggest you consider Medicaid and VA benefits.


Sep 02, 2015 - 07:41 AM

Generally speaking, assets are not “taken” from a person to pay for assisted living care. If you end up having to move to assisted living, you will be responsible for paying all expenses which means you may have to cash out your life insurance policy and annuity (if permitted) in order to pay for the cost of the assisted living facility. If your assets are depleted, you may apply for Medicaid assistance, but Medicaid does not cover the cost of assisted living, only skilled nursing/long term care.


Comments (1) | New Comment

By bonmain5555 on Jun 08, 2016 - 12:35 PM | Like (0)  |  Report

My mom is in an assisted living facility for almost 2 years. Almost all of her funds are gone and we were told that once she has no money they will help us file for Medicaid. If Medicaid does not cover the cost of assisted living how are the residents paying their rent at this facility. 90% are "Medicaid and they have more then my mother. Just wondering how the system works. Thanks.

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Sep 08, 2015 - 02:22 PM

If you are a veteran or the survivor of a veteran, some of the cost of assisted living may be paid by VA Aid & Attendance pension. In order to qualify, you may have to rearrange, transfer or spend down some of your assets prior to qualifying. Other for the simplist of situations, it is generally preferable to consult with a VA Accredited claims agent or attorney. No one may charge you for assisting in the filing process, but it is often advantageous to hire a professional to advise you of the criteria upon which the VA makes a determination.



Aug 28, 2015 - 04:31 PM

Most assisted livings are done with private pay funds (personal funds, long term care insurance-if yours qualifies or government funding if the community takes such funds). If the assisted living is part of a Continuum Care Retirement Community than it will likely be a different story. It's a good idea to talk to the marketing/sales director or the management team directly as their may be ways they handle different types of payment and receipt thereof.

A Place for Mom has some good resources and other information here: If you glance across the top tabs you may see something else that is of interest to you as well with regards to financial questions and senior care.
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