A lot of clients will come to us in what’s called a medicaid spend down situation. And what that basically means is the state of Ohio doesn’t really want to pay the bill any more than us. Medicaid is a needs based program.
You have to have a medical need, but you also have to have a financial need. And Ohio’s perspective, they don’t feel we have a financial need until everything is spent down, which is basically spent on care to below $2,000 total resources. That’s an extremely low number for quality of life. You would never spend all the way down during most retirement.
But if we throw that medical expense in, we do see folks heading that way. And again, that’s not the best interest that a client for quality of life. So speak with your advisors, your attorneys. They can suggest ways that can at least protect a portion of the estate for the parents quality of life. And of course, the parents would want things to go to the children downward.