Geezers (It's the Dollar Stupid)

When I was growing up in DC, there was no such thing as a nursing home that I was aware of, anyway. My Grandparents and Dad died without their existence being known to them. My Mom died in one, in 1981, and it was a place I didn't like to visit. Nursing homes came into existence as a virtually new business, when Medicaid and Medicare came on the scene in the late 1960's, and have flourished ever since. They're expensive. Very expensive, and today, a really nice one goes for maybe $1,000 a week or even more.

We all get old and die. I plan to live to 115, but even then, I will die. With the quality of nursing homes being what they are, the expense of one is not to be denied to an ailing geezer. I well remember when my Mom went in. The first thing they did was to check her bank account, to be sure there hadn't been any gifts or major withdrawals within the previous calendar year. This is the point of this. My Mom lived for quite a while, and at $3,000 a month, her stash went away before she died. I had to pay $1700 to bury her, because she was absolutely broke, and with her money gone, Medicaid and Medicare took over. Unfortunately, I never have inherited a dime!

If my Mom had been really wealthy, and her health failing, I would have insisted that she take a lot of her money out of her account, and switch it into gold and silver. Why? Because the gold and silver can be left without inheritance taxes, first of all, but that's not the only reason. Suppose your parents or even you yourself are well off, and eventually will have to retire to a nursing home. No ill wishes here, but it happens to all of us. Since they are expensive, and since the American welfare system insists on paying for a nursing home if the patient is broke, why not get in on it as soon as possible? How? By, more than a year in advance, taking the dollars out of the account and placing them into a tangible, such as gold and silver.

Suppose Grandma Smith is getting on in years, and her health is beginning to fail. She's really well off, and has lots of dollars tucked away in CD's. She will end up in a nursing home eventually, and she, as well as everyone else knows it. Wouldn't it be smart, to take advantage of the welfare system? I hate it, and so do you, but we pay far more in taxes than we will ever get back, so why not take advantage of the system? The problem usually, is that Grandma doesn't really know about gold and silver, and depends on the good old dollar, which she swears by, and has used all her life. "Boy, prices are really going up," is her observation, not "Boy, the dollar is really going down," which is the correct observation. It will require a bit of salesmanship to tell her about how she isn't going to lose her wealth by buying gold and silver, but they will be well placed in beautiful tangible things, which can be passed on to her kids and grandkids without paying inheritance taxes.

My mom didn't avoid anything, because she didn't have that much to begin with, but thousands of you out there, know those who do, and whose health is failing. You, or your parents, need to get out of those dollars at least a year before you go into that nursing home or elderly care of any sort, which can be paid for with the welfare system. They won't pay as long as there is anything left in the bank account. Is this cheating? I suspect it may be, after a fashion anyway, but it just makes sense to preserve one's wealth. The geezers must have worked hard to accumulate it, and they hope to pass it on to the heirs, I am sure. Nothing will be passed on, unless you can keep the tax collector's hands off of it, or the nursing home either. $4,000 or more, a month really eats into a legacy, believe me.

This is also why I steer clear of safe deposit boxes. When you die, the contents are sealed for probate, unless the contents are in more than one name. This is why one should have one's kids names on a safe deposit box, if one must be rented. When death comes, the contents are jointly owned, and no taxes are paid. I can see nothing wrong in avoiding inheritance taxes. When a man or woman spends their life working, and accumulating things, why shouldn't they be entitled to pass their work on to their offspring? I know this can be difficult, when land, farms, or homes are concerned, because they have titles, deeds, and are registered with everyone. Tangibles, such as jewelry, rare stamps, original art, and the like, carry no serial numbers or titles. Gold and silver are not on display, like an original work of art, so they are a far better tangible. When someone dies, their home is inventoried for tax purposes.

If the elderly geezer, (I like that name!) have gold and silver locked away in a safe or in some place unknown to anyone, it is simple to pass on one's wealth to whomever one desires, by merely telling them where it is, if one dies. "Now look son, if anything ever happens to me, in the attic, under that old trunk, between the joists, you'll find a lot of Krugerrands, which are yours. Just tell no one about it, and no taxes will be due," might be a nice little conversation. We all buy gold and silver, and especially now with this nice price dip, to preserve our assets. We don't want to get washed away with the dollar, as it goes down the drain. We know that gold and silver have no serial numbers on them, have been real money for thousands of years, and in all civilizations have been used as money, until that civilization turned fetid. Our American civilization, used real gold and silver for real money till that &%$#@* FDR got into office, and the decline began. Now, we are going the way of the Greenbacks and Confederates, because the presses are running night and day. So, protect your self of course, but also protect that old geezer you love so much, by giving them good advice. Let them pass on their work to you and yours, and not pay taxes on it.

I heard the story of a Jewish family, who before WW II, had a huge furniture store in Berlin. They knew what was coming, and decided to leave, and take their wealth with them. How to do it? They sold the store, converted the results into certified diamonds, and swallowed them before crossing the border. They had preserved their wealth, by using their heads. Life is difficult enough, without having to think ahead to preserve one's assets, but it is absolutely necessary. Government growth and dollar debasement will know no limits, till it all comes down in a heap. Just imagine having all of one's wealth in dollars or dollar denominated items. It makes me sick, just to think about it, and all the millions who will be wiped out by having trust in a worthless scrip. All civilizations, and all nations throughout history, have eventually had their currencies reach absolute zero. The dollar will be no exception. It doesn't require the IQ of Einstein to know that unbacked pieces of paper fluttering around like dandelion seeds in the wind, have no real value, because they represent nothing except more pieces of paper. Protect yourself.

No column next week, because I am going on vacation. I'll have my cell phone with me if you need anything. Click on "Don's Column" on my web site, for that information.

Just put the gold in the coffin and see which distraught family member starts digging first. Has anyone here ever seen the movie "Daddy's dyin' - who's got the will?"

Gramma and grampa used to stay home. I work at a nursing home and believe they are needed in our society for people who can not be cared for at home. However, IMO we are seeing the other side of a 2 income family. Day care for the kiddos are nursing homes for the elderly.

" Nothing will be passed on, unless you can keep the tax collector's hands off of it, or the nursing home either. $4,000 or more, a month really eats into a legacy, believe me."

So the author suggests placing the burden of nursing home care onto society.

A greedy socialist! I'm sure. What about personal responsibility?

Do we know that the medicare systems pays the same amount as the public. I doubt it.

This $3000 or $4000 a month is the public's fee. Medicare must be paying much less.

Can an in-the-know freeper verify this?

Wow this guy thinks that he is owed an inheritance. If one is older and has the money to pay for their care then they should. What does he want "free" universal nursing homes for everyone no matter what their income level? If ones parents earned the money and have it it is theirs to spend as the need arises. It does not become his until after they are dead. He is acting like the government ripped him off. Also he acts like everyone who is older ends up in a nursing home. That is not the case. Many of us keep our parents with us. A nursing home is only for when someones care can not be taken care of in a home setting. The best advice is to buy good long term care insurance early. I think the government will eventually start helping families in these situations because it costs them much more to put them in a nursing home. If a family can get help for say home health care workers or respite care it will keep many people out of the system and make everyone a lot more happy.

The rates are the same. It depends on the level of care. Medicare pays 100% for 20 days and then 80% for the next 80 days. Once used up, it's hard to qualify again. Here anyway, medicaid is the main payer.

So the author suggests placing the burden of nursing home care onto society.

That is exactly what he's suggesting. Take money away from some other working stiff to pay for your parent's nursing home.

Although I think he has a point about trying to protect your assets to pass along to whomever you wish when you are no longer here. If you're rich enough, you can afford the nursing home when the time comes and still pass plenty on to your heirs. If you're poor, you don't have anything to pass on and you qualify for medicaid. For those in the middle, Long Term Care insurance is the answer. Hubby has a policy and I need to start thinking about getting one while I'm young enough for a less expensive premium. I don't want some poor schmuck that doesn't even know me to have their money confiscated to pay for my care. And I don't want what I have worked hard to accumulate getting blown away in a nursing home. I want to have a say in where it goes and who it goes to.

I'm glad to see folks like you looking out for your future in a responsible manor. Good on you!

It really disgusts me when I hear stories of people who use lawyers to transfer wealth to others with the sole intent of placing an elderly individual into the domain of the public.

For those that are indigent, Medicaid kicks in. My understanding is that Medicaid pays only about $87/day, and I may be off just a hair on that figure. Depending on where you are in the US, daily rates can be MUCH higher that the figures quoted in this article, so the gap between private pay and Medicaid patients in the same facility is significant.

When my f-i-l broke his hip a year ago, his insurance company sent him to a nursing home to get daily physical therapy to see if he could regain his abilities. After they determined that he was not going to make any progress from the physical therapy (dementia just too bad), the insurance stopped covering his stay. He continued for a while as a private pay patient, and was paying $127/day, or $40 more per day than the government reimbursement for Medicaid patients.

I'm glad to see folks like you looking out for your future in a responsible manor.

After seeing two grandmothers waste away over the course of several years, one gets to thinking very seriously about how to plan for old age. Not only does hubby have a policy, but both of my parents do as well. Words cannot describe the peace of mind that gives me.

Nursing homes make me sick. Let me ask this question, where will the old person live longer, as a member of a family, doing their part for the unit or in death's waiting room watching their friends and roommates drop dead each day and praying for that rare visit from the kids? Sick crap, we throw away our old people like a pair of used socks.

When my parents can't live on their own they will live with my family. If that means moving to a different house that better accomadates them, so be it.

This $3000 or $4000 a month is the public's fee. Medicare must be paying much less.

# or 4 g a month helps make up the "shortfall" resulting from the welfare patients. Have you ever seen a medicare nursing home? It is not pretty.

Even worse than what the nursing homes are charging is what the savvy insurance companies charge you for "extended care" insurance. If you fall for this scam, depending upon your age at the time you sign up for it (don't do it!), your monthly premiums can be as high as $2,000 +.

I like the idea of the gold coins hidden away, but make sure the heirs know where they are. My father-in-law had some gold coins hidden in the basement, but an ingrate grandson found them, lifted them and traded them in for his own use. When gold is in play, people do crazy things.

Medicaid rates vary, depending on the level of care a resident needs. The 79 dollars is the minimum paid. It's against the law to charge the public a different rate. I have mixed feelings on families spending down with the intent that nursing home a possibility in the future. Medicaid is welfare. People wouldn't want someone to get approved for food stamps, housing etc that had 20000 dollars in the bank but at the same time I can understand the feeling of "mother paid taxes all her life and the government not going to take her last 20000 dollars" If mom and dad placed in a swanky private pay retirement facility would the money still be such an issue though? Would someone expect the government to foot the bill? What's the difference?

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