Advice on spouse’s elderly parents’ move to the US

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InvestoGuy
Posts: 165
Joined: Thu Feb 11, 2010 1:34 pm

Advice on spouse’s elderly parents’ move to the US

Post by InvestoGuy » Thu Jan 03, 2013 9:53 am

Advice on spouse’s elderly parents’ move to the US
I would appreciate some input / suggestions on the following situation.
Spouse’s Parents: Age: 82 and 76.
Citizenship: NOT US Citizens. Another 6 years for citizenship.
Green card Status: In process, will take another year.
Current Domicile: Outside the US.
Parents would like to move to the US since their kids are all here. They are not US citizens and will take another 5-6 years to get the citizenship.
Based on the situation above, I have the following questions:
1. My understanding is, since they are currently not US citizens, they will not be eligible for Medicare and thus will have to buy their own insurance? Is this correct?
2. At their age (82 and 76) can they be insured? Approximately how much will insurance cost them and will this cover most minor and major stuff such as hospitalization, surgery, etc.
3. After they get citizenship and then become eligible for Medicare, will this cover all their health care needs? What is not covered by Medicare that they may have to pay on their own?
4. After selling all their property etc. they will have a total net assets of about $550K to $700K. What safe withdrawal rate should I assume to make sure their funds will last them for their life time?
Thank you for any input.
Sincerely.

ddunca1944
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Re: Advice on spouse’s elderly parents’ move to the US

Post by ddunca1944 » Thu Jan 03, 2013 11:22 am

1. My understanding is, since they are currently not US citizens, they will not be eligible for Medicare and thus will have to buy their own insurance? Is this correct?
That is correct
2. At their age (82 and 76) can they be insured? Approximately how much will insurance cost them and will this cover most minor and major stuff such as hospitalization, surgery, etc.
That is tough. I'd try some of the online resources (like ehealthsurrance) for a quote. Next year the ACA will kick in; that might help, but I don't know. Perhaps other, more knowledgeable, posters will.
3. After they get citizenship and then become eligible for Medicare, will this cover all their health care needs? What is not covered by Medicare that they may have to pay on their own?
Medicare is not automatically conferred with citizenship. They have to have had enough work credits to qualify. It is likely that they will not qualify for Medicare, so should plan to pay for their insurance indefinetly.
Medicare part A pays for hospital coverage (with a deductible). Part B pays for 80% of doctors visits. Most seniors carry a supplemental policy. Part D is for prescription drug coverage.

reggiesimpson
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Re: Advice on spouse’s elderly parents’ move to the US

Post by reggiesimpson » Thu Jan 03, 2013 11:34 am

My understanding is that some if not all States have very affordable plans for low income folks. I dont know if this would apply to these non citizens with those assetts. It may be time for them to consider gifting to there kids to reduce there estate?

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HueyLD
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Re: Advice on spouse’s elderly parents’ move to the US

Post by HueyLD » Thu Jan 03, 2013 11:42 am

If your in-laws are moving to California, you need to study Medi-Cal ( http://www.medi-cal.ca.gov/ ) and its eligibility requirements.

InvestoGuy
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Re: Advice on spouse’s elderly parents’ move to the US

Post by InvestoGuy » Thu Jan 03, 2013 1:44 pm

Thank you all for your responses. I appreciate the advice. Looks like lot more research to do.
Any other information / advice is welcome as well. More posters the better.

TedSwippet
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Re: Advice on spouse’s elderly parents’ move to the US

Post by TedSwippet » Thu Jan 03, 2013 2:01 pm

InvestoGuy wrote:4. After selling all their property etc. they will have a total net assets of about $550K to $700K. What safe withdrawal rate should I assume to make sure their funds will last them for their life time?
Your in-laws should take care to sell all appreciated property -- shares, house, artworks, everything -- before becoming citizens, green card holders or other US "tax residents", to avoid an unpleasant US capital gains tax surprise. Once in the US tax net they become liable for US tax on the gains since purchase, even if that is decades before they even set foot in the US. And worse, the gain is denominated in USD. Where the USD falls it's possible to register a local currency loss that appears as a USD gain. Here the US will want capital gains tax on that phantom income, paid in real dollars.

A good google search will get you some useful pre-immigration planning points (such as this one), but US tax laws for trans-nationals are appallingly complex. Your in-laws will almost certainly want to take professional advice before setting foot in the US.

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mudfud
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Re: Advice on spouse’s elderly parents’ move to the US

Post by mudfud » Thu Jan 03, 2013 3:27 pm

InvestoGuy wrote: 1. My understanding is, since they are currently not US citizens, they will not be eligible for Medicare and thus will have to buy their own insurance? Is this correct?

Check out http://www.cms.gov/Medicare/Eligibility ... index.html

When they qualify for Medicare it won't be free (even Part A) if they have not worked in the US for at least 10 years.

Also, they could get Medicare as permanent residents, if they have lived in the US for 5 years.
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