Over the past decade, baby boomers have watched their parents impoverish themselves paying for long term care; often because a health crisis necessitated an unexpected need for such care. Having watched this happen, more and more adult-children are seeking options available now to protect their assets in the event they have a long term care need in the future.
While public benefits, such as Medicaid, may be available to pay care costs, these programs have strict financial eligibility requirements. Medicaid also has a “look-back” to determine whether an applicant has given away or transferred assets prior to application; doing so may result in a period of ineligibility for benefits.
Fortunately there are both legal and financial options that younger individuals can use to both protect assets and also fund long-term care, if needed. A long range asset protection plan should include both legal planning and financial planning.
An Elder Law Attorney will develop a plan that restructures assets to protect them from exposure to long-term care costs, while possibly accelerating your eligibility for public benefits if the need for should arise. A financial planner will provide ways to maximize your existing resources and identify options to offset long- term care expenses such as long-term care insurance or other insurance products.
Consider the following:
- $10,000 or more: The monthly cost of nursing home care in our area
- 82 years old: The average age of entry into a nursing home.
- 70%: Percentage of Americans over 65 that will require some kind of long-term care.
- 5 Years: The current Medicaid look-back.
When faced with these statistics, implementing a long-term asset protection plan today, will certainly protect you and your assets tomorrow.