One of the greatest fears that Baby Boomers and aging Americans have is that they may end up in a nursing home. If this happens, they don't want to drain all of their assets in the process, leaving nothing behind for their loved ones.
Having to move into a nursing home can mean much more than losing one's autonomy, it can come at a huge financial price. Depending on the facility and the level of care, a nursing home can cost between $40,000 and $180,000 a year.
Most seniors pay for their nursing home care out of pocket until their savings run dry. Then, they qualify for Medicaid, which picks up the cost. While paying privately could mean that you'll get to stay at one of the nicer homes, it also means that you get to delay dealing with your state's welfare system – a time-consuming and often aggravating process.
Advantages of Medicaid Planning
When you plan for an unanticipated need for care, you are protecting your family and your estate. One way to accomplish this is by purchasing long-term care insurance, or by ensuring that you are able to receive benefits under the Medicare or Medicaid programs, without losing valuable assets in the process.
If you are not in need of immediate long-term care, then you have an advantage. You have the luxury of distributing your assets in advance. This way, if something happens and you need long-term care, you will quickly qualify for Medicaid benefits.
The truth is that Medicaid planning is individual, and there isn't a cookie-cutter approach to the process because every client's situation is different.
Some people have more savings than others. Some are married, while others are widowed or divorced. Some have family support, while others don't. Some own their own homes, while others live with their adult children. Still, there are some basic strategies used by estate planning attorneys in the Medicaid planning process.
Are you interested in Medicaid planning? Contact an estate planning attorney for assistance!