When you are a younger adult who has never had any trouble getting around the subject of long-term care can seem completely irrelevant. However, those who are currently residing in a nursing home or assisted living community probably felt the same way at some point in time.
It is important to look ahead toward the eventualities of aging if you want to be comprehensively prepared for the future.
Long-term care is actually going to be needed by about 70% of people in the United States before all is said and done. Medicare does not pay for long-term care beyond 100 days of convalescent care.
Long-term care expenses and estate planning have a direct connection. If you want to have something left to leave behind to your loved ones you should understand the expenses that you may face during your twilight years.
When you combine the length of stay with the average costs associated with nursing home care you could well be looking at an expense that is somewhere in the vicinity of $200,000.
For many people this is where Medicaid comes in. Though Medicare won’t pay for long-term care Medicaid is a government program that will assist if you can qualify.
Because of the upper asset limits and the five-year look back period that prevents divestitures within five years of applying for Medicaid, you must plan ahead in advance with full knowledge of program regulations to optimize your position.
The wise course of action is to sit down and discuss your unique situation with a licensed elder law attorney. Your lawyer will gain an understanding of your financial situation and your overall goals and provide you with personalized recommendations.
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.