Americans are living longer thanks to medical advances. As a result, seniors need to plan the future carefully. Indeed, start making long-term care decisions early. Nursing homes cost around $10,000 a month. Therefore, one should consider purchasing long-term care insurance. This insurance covers assisted living care and nursing homes. Further, some policies may pay for the care one needs while aging at home. The trend is for seniors to stay at home or in an assisted living facility. They move to nursing homes when more care is needed. Why buy long-term care insurance if Medicaid will pay for care? Unfortunately, Medicaid does not pay for people who have assets.
Peruse the website of the Law Office Of Raoul J LeClerc Paradise CA. The website contains a wealth of information about elder care. Just Click Here and learn what planning needs to be done. Persons with assets may want to leave a legacy for the family. Additionally, if they get sick, their spouse must be taken care of. Medicaid only pays for those with less than $2,000 in assets. This does not include a home and a vehicle. Many lawyers advise clients to spend down their assets on certain items. These items are considered “non-countable” by Medicaid. Examples include paying down the mortgage, pre-paid funeral plans, replacing an old car, or paying for home-health care.
On the other hand, some may choose to transfer their assets. However, the government penalizes those who do. Therefore, visit the Law Office of Raoul J LeClerc Paradise CA before making any decisions. Transfer penalties vary, and a lawyer should explain the options available. One tool used is an irrevocable trust. The owner of the trust may only receive interest on the money transferred. The government initiated an ineligibility period for people who transfer assets. Interestingly, the length of the ineligibility period is based on the amount of the transfer. The transfer amount is divided by the average cost of nursing home care in the home state.
These issues should be included in any discussion of estate planning. In addition, one should consult with the lawyer long before care is needed. Americans work hard for their assets and should protect them.