DON’T LET LONG-TERM CARE COSTS CRUSH YOUR NEST EGG Shield Your Savings
Roughly 1 in 3 adults 65 and over will need long-term care help at some point, such as a nursing home. Many of them are unprepared for the mind-blowing costs involved. Neither Medicare nor most private health insurance plans will pay for custodial care. The costs can quickly soar to nosebleed levels, crushing the nest egg a retiree has worked a lifetime to accumulate. However, even a well-to-do individual can qualify legally for government assistance if they lay the groundwork at least five years in advance. This strategy involves setting up a Medicaid asset protection trust. Medicaid is a government health insurance program that pays for custodial long-term care, but only for people with very few assets. Qualifying for Medicaid requires meeting strict income and asset limits. Middle-income people must often “spend down” their assets to less than Medicaid’s $2,000 limit before qualifying. Some assets, including one motor vehicle and the applicant’s home, aren’t counted, up to $713,000 in Louisiana. Healthy spouses are also entitled to certain allowances.
protection trust enables applicants to shelter assets for at least five years before applying for Medicaid. Under an irrevocable income-only Medicaid trust, an individual can receive income from the trust, but the principal remains out of reach. A five-year lookback period means that any assets transferred within five years of applying for Medicaid triggers a penalty, delaying eligibility.
Planning ahead for long-term care can be difficult. It’s wise to engage the help of an
experienced elder law attorney to navigate this complicated turf. Contact us for personalized attention and planning. We will help you develop a properly constructed plan to ensure you have the care you need while preserving the savings you worked so hard to build.
As part of the qualification process, Medicaid examines an applicant’s assets over the five years preceding their application. A Medicaid asset
To learn more about Medicaid and long-term care planning, scan the QR code below. You can even use our free Medicaid calculator to determine your eligibility.
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