You’ve spent your whole lifetime working hard and building up a diverse portfolio of assets.…
As people approach their later years, they may be concerned about the potential for expensive long-term care facility fees to deplete their life’s savings. One option is to rely on support from children and loved ones, but this is not always possible. State laws may require a qualified nursing facility to take over care if someone is unable to remain safely at home. Without proper planning, this could result in significant financial strain. It is important for everyone to take steps now to safeguard their assets and prepare for potential future expenses.
Financial Planning for Long-Term Care
There are two ways to cover the costs of a care facility: private and public. Private options include paying out of pocket or using a previously purchased insurance plan. Public options include Medicaid, but only if you meet the eligibility requirements.
Medicare Doesn’t Have You Covered
Medicare is a government-sponsored healthcare insurance program that was established in 1966 by President Franklin D. Roosevelt. It provides coverage for medical issues, which are defined as conditions that can be cured or that are expected to improve. However, Medicare does not cover long-term care, such as the type of care provided in a nursing facility. To receive coverage for long-term care, you will need to qualify for Medicaid, which is a separate program.
Medicaid Comes with Conditions
Not everyone qualifies for Medicaid; in fact, many don’t. Medicaid is a joint federal and state program that helps cover medical costs for some people with limited income and resources. To qualify for Medicaid, a household typically cannot have more than a certain amount of assets, such as a home, a vehicle, and a small amount of savings. However, with careful planning, it may be possible to qualify for Medicaid and have the peace of mind of having this coverage in place.
Arrange Your Affairs with Care in Mind
Working with an experienced elder law and estate planning attorney can help you make arrangements that allow you to privately pay for care for as long as possible, while also ensuring that Medicaid is available when needed. This can give you peace of mind that your assets will be protected and that they can be passed on to your loved ones, rather than being used to pay for unexpected nursing facility fees. An attorney can provide guidance on how to set up this type of plan and ensure that your affairs are in order.
Contact The Law Firm of Christopher W. Dumm