When you are preparing for the eventualities of aging Medicaid planning may well be relevant. This is because of the fact that Medicare doesn’t pay for long-term care, and most people will need help with their activities of daily living eventually.
It is not a simple matter of getting out your checkbook. If you combine the average length of stay with the average cost of nursing home care the figure is going to be in the vicinity of $200,000 using today’s prices.
The costs of nursing homes and assisted living communities have been rising steadily year-by-year, so this figure could be higher by the time you need long-term care.
If you retire while you are in relatively good health you may decide that Medicaid planning is not important because you have no reason to believe that you will ever require living assistance. You reason that there is no history of dementia in your family, and you and your spouse are having no problems taking care of yourselves.
In fact, Medicaid planning would indeed be important to you if the above circumstances were to exist in your life.
Because you are in good health you would logically expect to live to an advanced age. The portion of the population that is at least 85 years old is actually growing faster than any other.
When you look at the statistics Alzheimer’s disease is very prevalent among people who have reached the age of 85. According to the Alzheimer’s Association around 45 percent of people in this age group have Alzheimer’s disease.
Alzheimer’s induced dementia can make it impossible for sufferers to take care of themselves.
This alone is quite attention-getting, but many people who don’t have Alzheimer’s disease need living assistance.
The wise course of action would be to discuss everything with a licensed Indianapolis elder law attorney. When you understand all of the facts you can go forward making preparations in an intelligent and informed manner.
During the consultation you will learn that there are upper asset limits that you must stay within to qualify for Medicaid, but everything that you own does not count when Medicaid is determining your eligibility. And, if you are married your spouse could keep his or her portion of shared assets up to a particular limit.
It is also possible to divest yourself of assets in anticipation of applying for Medicaid. If you do this far enough in advance you can potentially qualify for the program while you keep a significant portion of your resources within your family.
This is a little bit of food for thought. If you would like to learn more about Medicaid planning we invite you to download your copy of our free special report on the subject. The report can be accessed by clicking this link: Free Indianapolis Medicaid Planning Report.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
- How Do I Know If My Estate Has Enough Liquidity? - July 22, 2019
- Can’t I Just Transfer Assets to My Adult Child If I Need to Qualify for Medicaid? - July 19, 2019
- What Type of Will Is Best for Me? - July 17, 2019