Did I just find a Roth IRA Pitfall?

[Joe Tomko]

I recently learned something and I want to confirm whether or not it is correct.  

My father may end up in a nursing home in the coming months.  I just learned that virtually everything my parents own is suceptible to being used to pay for the nursing home.  They can protect one house and one car.  Personal investments, the Roth IRAs for each of them, and anything else can be tapped to pay the cost before medicaid will chip in.  Even RMDs from traditional IRAs can be tapped.

Does anyone know if there is a way to protect these funds so my mother doesn't become a pauper taking care of my father, then is destitute if/when she needs a home?  There is a five year look back where things can be undone, so I'm looking for a workaround.

As they will be moving to be closer to more family, I suggested using cash from the aforementioned accounts and the full equity in their current house and .buying a much more expensive house. This will protect some wealth. Could they use a HELOC for her living expenses?

It's a little frustrating that they paid all their lives to support others on medicaid and other government programs and now they cannot reap any benefit themselves unless they lose virtually everything they have.

Any thoughts?

[Account Closed]

@Joe Tomko Maybe he can't afford a nursing home. Maybe you should take them in instead, since you are the potential beneficiary of their assets.

Your comment: "Does anyone know if there is a way to protect these funds so my mother doesn't become a pauper taking care of my father, then is destitute if/when she needs a home?"

Isn't it the duty of children to take care of their parents, not the state's (government) responsibility? Why should the government increase my taxes to pay for care for your parents? Just curious. 

"Medicaid is a program intended for those with low income" 

Medicaid is not intended for people with assets that can be used to take care of them in their declining years. Children have a responsibility and that responsibility isn't to try and figure out ways around the system when it becomes inconvenient financially. I'm sure you will find a way to add a room, or get into a bigger house and care for them as they are entitled to for having brought you into the world.