I would love, if you have time, for you to work out the scenario in Study #1, p. 226 if we assume that George will enter a nursing home in 36 months.
So assume his expenses while not in nursing home are $3,000 per month instead of the $5,800 if private paying in the NH. So he needs to retain 36 months of $3,000, but he has $2,090 in income per month. So he needs to retain $910 per month x 36 months = $32,760. But then the penalty does not trigger until 3 years from now when he applies and otherwise qualifies. So at that point he only has $182,240 left. So he gifts $103,467 and retains $76,773 in the form of an annuity and triggers a 20.69 month penalty. His income of $2,090 per month and the annuity covers his private pay.
So if he is not in ‘crisis’ mode, he actually gifts less? Seems he should be able to gift more………… What am I missing? I was hoping to gift more than the $122,500 crisis mode ‘half loaf’ plan.
Thanks!
