If you are looking to retire soon you may be assessing the options that you have available to you as far as your pension is concerned. Most employers either offer some sort of payment option or a payment of a lump sum.
While on the surface it might seem much more beneficial in the long term to take the payments, it may actually be the worse option; particularly when it comes to long term care. Here are some reasons why you should consider taking the lump sum pension payment instead.
Payments go to the Care Facility
The costs of long term care facilities are enormous. Because of this many of them require that all revenue streams that are granted to a patient are paid directly to the facility. This includes social security and any pensions that you might be getting. The arrangement is required if you plan to use Medicaid to supplement or pay for the long term care. This can be troublesome if there is a healthy spouse or partner that is depending on that money in order to live.
The Lump Sum
Instead of being a revenue stream like the payments, the lump sum payment becomes an asset. Because of this you are able to protect it as you can with other assets. Trusts are one option that you can use in order to protect your money while still qualifying for Medicaid. A trust moves ownership of the asset away from the individual and to the trust. The trust is then set up to pay out to individuals for things that they need. Rent, living expenses and medical payments other than long term care are examples of ways you can disburse the money.
If you are thinking of taking a lump sum pension payment, contact Stano Law group for assistance.