Many of us will have to make the tough decision to place a senior loved one in a nursing home when they become unable to care for themselves. Given the fact that the cost of nursing homes can be as much as $8,000 a month, it’s important to know how to protect your assets from nursing home costs. If you’ve started discussing nursing home care with your family, that means it’s also time to consult a local elder law attorney. Crafting a long term care plan with your elder lawyer can help you ensure the future wellbeing of your senior loved one – and even yourself when the time comes.
The Importance of Early Asset Planning for Nursing Home Care
Whether it’s for yourself or a loved one, It’s crucial to be realistic about the full financial situation when planning for nursing home care. This doesn’t mean how much income you bring home every month, it means totaling all of your assets including properties, businesses, cars, stocks, savings accounts, 401ks and more. In order to best plan for your long-term care, the elder law attorney you hire needs to understand the full size and scope of your assets portfolio.
Understanding Medicaid Eligibility and Asset Limits
Once you reach a certain age you might be eligible for Medicaid, which provides free or low-cost healthcare to those who qualify. Applying for Medicaid can be a confusing and complicated process, and you’re required to disclose financial information like income and assets. This information is used to assess your eligibility, and if you’re above the threshold set by the government, you may not qualify. An elder law attorney can talk you through the application process and advise you on your eligibility based on your assets.
Working with an Elder Law Attorney
Hiring an experienced elder law attorney is always recommended when planning for nursing home costs or related long-term health expenses. They can ensure your assets are protected and won’t be leveraged against nursing home costs. Elder lawyers can assist with Medicaid applications and eligibility. They can also help you budget health costs for your senior loved one.
Estate Planning Techniques to Protect Your Assets
- Give your loved ones financial gifts now, because even if they don’t need it, they can undoubtedly use it in the future and it will provide them with a bit of extra security. There’s no need to hang on to your money when you have more than enough for yourself.
- Transfer your assets into an annuity. This is a way to make yourself eligible for Medicaid, but speak with an estate planning attorney before moving any assets or money.
- Set up an irrevocable trust. This is often viewed as the ultimate form of financial protection. If you are someone with a large estate, this is an ideal option to consider.
For more information about how to protect your assets from nursing home costs, or if you have any questions about elder law and estate planning, please contact our team at SCC Legal today.
Originally published at: https://www.scclegal.com/protect-your-assets-from-nursing-home-costs/