Downsizing, To Move or Not to Move? That is the Question

I forgot to mention that I still work full time. So, less time to fill. And, I will still be working after the move.
My husband is retired and good at occupying himself.
I can’t live in a condo as I have dogs and cats and plan to be a beekeeper.
I’m not worried about being lonely or changing my mind about living near kids — or them changing their minds - I’m worried about falling on ice.

The only real problem of a CCA is the cost. You have to “buy in” (can be well over $200,000), then pay the monthly fee(can be well over $4,000). Medicaid is not accepted, so if you live long enough and can no longer afford the fee, out you go. Some use an algorithm to refund a portion of the “buy in” when you leave by moving out or to family upon death.
For those who have long term care insurance, be sure to check your policy- most are now for a certain number of years or for a certain dollar amount, NOT for as long as a person needs the care.
Our policy is 5 years or $450,000. My husband is in AL and is soon going on Year 4. I’m starting to research what to do next. He has vascular dementia, heart issues, and brittle diabetes, but is SO much healthier with the structure of the facility.
I’ve met with an Elder Law attorney. Approaching the 5th year, they recommend gathering info about AL and SNF facilities that do accept Medicaid. In the 5th year, making the application with their assistance (counselors at your county’s Area Agency on Aging also can do it with you). Medicaid gives you a “spend-down amount” that you must use from your funds/assets and after the LTC insurance stops, you spend down, paying the facility bill and other allowable expenses (pre-paid funeral, electric lift chair, medications/incontinence briefs/MD co-pays). You can move your loved one to a facility that accepts Medicaid and do the “spend down” there. Medicaid follows your state’s rules as to the well-spouse’s half share of funds/assets and the spouse lives in the house until death or sale (such as the spouse deciding also to move into an AL).
If the “spend down” funds are used up and the person goes on Medicaid, the state will attach a lien to the house to reclaim the taxpayer funds used, up to the half-value (the person’s share) of the sale price. The spouse gets the other half value.
Lastly, the state does a 5 year “look-back” from the date of application. It’s very important not to look as if you tried to dump assets- money gifts over $500, putting an adult child on your house deed, adding a relative to a brokerage account, etc. If your spouse is a veteran and is eligible for VA services at home or in a facility, they do a 3 year look-back and do not attach the spouse’s assets after the veteran’s death.
Sorry to go on so long, but I think it’s important to get ready for what might be coming, just in case.

The only real problem of a CCA is the cost. You have to “buy in” (can be well over $200,000), then pay the monthly fee(can be well over $4,000). Medicaid is not accepted, so if you live long enough and can no longer afford the fee, out you go. Some use an algorithm to refund a portion of the “buy in” when you leave by moving out or to family upon death.
For those who have long term care insurance, be sure to check your policy- most are now for a certain number of years or for a certain dollar amount, NOT for as long as a person needs the care.
Our policy is 5 years or $450,000. My husband is in AL and is soon going on Year 4. I’m starting to research what to do next. He has vascular dementia, heart issues, and brittle diabetes, but is SO much healthier with the structure of the facility.
I’ve met with an Elder Law attorney. Approaching the 5th year, they recommend gathering info about AL and SNF facilities that do accept Medicaid. In the 5th year, making the application with their assistance (counselors at your county’s Area Agency on Aging also can do it with you). Medicaid gives you a “spend-down amount” that you must use from your funds/assets and after the LTC insurance stops, you spend down, paying the facility bill and other allowable expenses (pre-paid funeral, electric lift chair, medications/incontinence briefs/MD co-pays). You can move your loved one to a facility that accepts Medicaid and do the “spend down” there. Medicaid follows your state’s rules as to the well-spouse’s half share of funds/assets and the spouse lives in the house until death or sale (such as the spouse deciding also to move into an AL).
If the “spend down” funds are used up and the person goes on Medicaid, the state will attach a lien to the house to reclaim the taxpayer funds used, up to the half-value (the person’s share) of the sale price. The spouse gets the other half value.
Lastly, the state does a 5 year “look-back” from the date of application. It’s very important not to look as if you tried to dump assets- money gifts over $500, putting an adult child on your house deed, adding a relative to a brokerage account, etc. If your spouse is a veteran and is eligible for VA services at home or in a facility, they do a 3 year look-back and do not attach the spouse’s assets after the veteran’s death.
Sorry to go on so long, but I think it’s important to get ready for what might be coming, just in case.

Thank you, @rosemary for raising this important question. Like, Dana, I've been exploring for the past 2 yrs, the concept of downsizing and moving into an independent sr living estbl. near my daughter and family out-of-state. I also own a spacious home and while I can still manage the upkeep and regular maintenance required, more of my circle of close aging friends are facing similar deliberations and several already have moved, some to be closer to immediate family and others because of the need for more supervised care.

The question for me is timing. Would it be better to sell and move while I still have some wits about me and can take care of the decisions required in listing the house, arranging an estate sale, selecting the next residence or do I wait because my cost of living, maintenance and lack of state inc. tax makes it financially more feasible to stay put awhile longer. I bought long-term care ins. yrs ago and have been so fortunate that the premium has only gone up once and that to a small degree.

If I wait until I have fewer wits about me...which might not be long! vbg...my daughter would be ever so capable in handling what had to be done. However, I still vividly remember the difficulties I lived when handling my mom's later daily care and medical needs, home maintenance & repairs and later estate issues while living out-of-town. Living out-of-state would have only compounded the issues requiring action.

My longest divorced friend here of 40+ yrs recently began building a new home out-of-town to be near her children and grands. The new house is under construction; most of her belongings and furnishings for the new house have been moved and and placed in storage in the new location. Having completed her estate sale with her house listed for sale, she now is finding that there is almost a freeze on residential house sales in this area.

Now, with the spread of the virus especially hitting the senior living and nursing home establishments, I can only be thankful that I have waited on my decision. However, time does not stand still and my mental debate over timing continues.

I would really like to hear how others are thinking about downsizing and starting to plan ahead.

It's rare to hear of someone who bought long term care insurance and has only had 1 premium increase. My policy has increased frequently not to mention a major law suit brought against the insurance company (not by me). Because of that subscribers needed to reduce services they wanted. We're paying high prices but will only get minimal services when the time comes. If you drop the policy, you lose all the money you've paid in over the years.

I have not heard of this scenario (increase of premiums). I purchased my long-term care insurance in 2013 and have never had a price increase. I believe I was told this was a fixed premium, and I know I was told that if I did not end up using the policy, that the full amount of premiums paid (not dividends they earned, though), would be refunded to my estate to be used in whatever way I designated in my will. This is written into the policy. I check in with my agent from time to time (every two or three years) just to stay in touch.
Anyone else have premium increases or diminishment of services insured for? My policy does have the same stipulation that if I drop it, I forfeit all premiums I have paid, but I am in no way thinking of doing that.
Thanks, all!

I have not heard of this scenario (increase of premiums). I purchased my long-term care insurance in 2013 and have never had a price increase. I believe I was told this was a fixed premium, and I know I was told that if I did not end up using the policy, that the full amount of premiums paid (not dividends they earned, though), would be refunded to my estate to be used in whatever way I designated in my will. This is written into the policy. I check in with my agent from time to time (every two or three years) just to stay in touch.
Anyone else have premium increases or diminishment of services insured for? My policy does have the same stipulation that if I drop it, I forfeit all premiums I have paid, but I am in no way thinking of doing that.
Thanks, all!

What company is your long term policy with?