We provide holistic assistance for people who want to be fully prepared for the eventualities of aging. One thing leads to another, so you should prepare for your active retirement years and the twilight years that will follow.
Medicare is an important piece to the puzzle. Most people are aware of the fact that Medicare is a government health insurance program that is intended to provide health care coverage for senior citizens.
Everyone does not automatically qualify for Medicare. To obtain eligibility, you must accumulate at least 40 retirement credits while you are working and paying taxes. You can accumulate up to four credits per year, and in 2015, you get one credit for every $1,220 that you earn.
The age of eligibility for Medicare coverage is 65 at the present time.
Medicare will certainly provide a foundation for you when you obtain eligibility, but it does not pay for everything in full. There are out-of-pocket costs that you must contend with for things that are covered, and you should prepare for these expenses when you are creating a retirement budget.
In addition to the above, you should understand the fact that Medicare does not pay for long-term care at all. Most seniors will eventually need living assistance, and Medicare will not help with the costs.
Long-term care is quite expensive, and these costs are rising year-by-year. The national average for a year in a private room in a nursing home exceeds $90,000, and people sometimes spend multiple years in these facilities.
If you do not plan ahead in advance, nursing home costs could potentially consume everything that you intended to leave to your loved ones after you pass away.
For many, the solution is Medicaid. This program will pay for long-term care, but people with assets cannot qualify, because there is a $2,000 limit on countable assets.
To qualify for Medicaid, you could give assets to your loved ones before you apply. The tricky part is the fact that you have to complete your gift giving at least five years before you submit your application if you want to obtain timely coverage.
Because of this look-back period, careful advance planning is required.
Medicaid Planning Report
Everyone should take potential long-term care costs seriously, because 70 percent of seniors will someday need help with their activities of daily living.
Medicaid pays for most of the long-term care that is received by elders in our country. It can provide a solution, but program rules are complex.
We have prepared an in-depth special report that will provide you with a great deal of useful information about this program. The report is free, and you can visit this page to access your copy: Indianapolis IN Medicaid Planning.
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.