Ask the Expert
Do you have money questions related to a stroke, such as:
- How do I pay for my husband's care after his major stroke?
- How much do I need in reserve to plan for a major illness?
- Do I need a will or a trust?
- How do I apply for government disability benefits?
Submit your questions to our expert, Shannon Nash.
Note: If your question is selected, you will get a response via e-mail and posted on this Web site, as well as a Power item (ex: lapel pin).
Previous weeks question:
- Q:Is there special insurance for strokes and other illnesses like there is for cancer? Also, is a “cancer policy” a smart choice? Finally, if one of my parents has a stroke, how can I make sure their rehabilitation or possible stay in a nursing home is covered?
- A:Yes, these policies typically cover several critical illnesses, including strokes. These policies can be a great choice to help with living expenses while you're unable to work. They also can be used to cover costs related to rehabilitation and nursing home costs.
- Q:Is it possible to shelter an elder's assets to prevent liquidation for a nursing home. Is this legal?
- A:Yes, it is possible to transfer assets to a relative legally, subject to several restrictions. For example, a five-year look-back rule may include these assets in the elder's total assets for calculating Medicaid eligibility.
- Q:What are the tax and financial impact/implications of taking a 401k hardship withdrawal after someone has a stroke?
- A:You can take a 401k hardship withdrawal for your medical expenses. Typically, the 10 percent penalty for early withdrawals will be waived, but you will still have to pay income taxes. But once you take this money out, you can't put it back in and thus you lose for life the tax advantage on these funds.
- Q:After my mother suffered a major illness, she was disabled and unable to work. Also, social security did not provide her with enough money to pay her regular bills. How does someone like my mother pay her everyday bills?
- A:You should first help your mother do a spending plan (a budget) with her current monthly income and expenses. This will help to set priorities and make the needed changes to reduce her expenses (such as cutting prescription, medical, food and housing costs). This will also highlight creditors that you may contact about making new/smaller payment plans.
Disclaimer
The Power Finance Section provides general finance information. It does not substitute or supersede professional or legal advice. The content areas posted on this site are believed to be current, but over time legislative and regulatory changes as well as new developments may date this material.