You might have an older loved one, perhaps a parent, who lives in a long-term care facility. And if you do, you’ll understand just how expensive that is in Pittsburgh and across the country. The best time to plan for those long-term care costs for yourself is now, long before you need care. With preparation, you’ll be ready should you ever need such care.
And you just might. According to the Genworth Cost of Care Survey 2019, 70% of people will need long-term care. The median cost? It’s $7,513 each month for a semi-private room in a nursing facility.
Long-term care can be paid for three ways: Out of your own funds, through a long-term care insurance policy (if you bought one) and Medicaid. Most people need Medicaid assistance to afford their care.
Medicaid planning involves ensuring bills for your care will be paid while leaving funds available for your spouse to survive. By planning, you can protect your assets and still qualify for Medicaid to take care of those long-term costs should you need it.
Medicaid is for those with limited assets and a low income, and the amount of money you can have and still be eligible for Medicaid is set by the states. But there are legal strategies that will allow you to qualify while preserving your major assets for your family. They include tools such as an asset protection trust, income trust annuities and promissory notes.
Planning for long-term care is complex, and Medicaid planning is a strategy to explore. It is worth a consultation with an attorney experienced in estate planning to discuss Medicaid planning and how it can help you and your family.