A client’s daughter came to us. She worked her way through college by being an aid in a nursing home. She said she had seen many people come in. Some, she said got to keep their house and their property. But some had to pay until they had nothing left. After that life lesson, she brought her mom in for planning. Here is the key to preserving as much as possible of your estate: make a plan early and use a qualified elder law lawyer.

Medicare is health insurance for seniors. It will pay up to 90 days of rehabilitative care. After that you must pay. At a cost of around $180,000 per year with an average stay of slightly more than 3 years, that cost can quickly reduce a family’s estate to nothing. If there is a spouse at home, this can mean a radical change in the quality of their life. There can be a lien on the family home.

Medicaid is a government program that will pay for long term care in a nursing home if the individual or couple has very little money. With a proper estate plan in place you can protect most of your property. You can protect your house, and much of your savings. But you can only do that if you plan now. Even in a crisis we can protect a significant amount of your assets, but only if you come to us in time.

Don’t confuse Medicare with Medicaid. Medicare is health insurance but even with a Part B plan, Medicare will not cover the cost of nursing home long term care. Medicaid will, but only if your property is under the asset levels set by the government.

Additional Issues For Asset Protection

Plan

Medicaid Asset Protection Plan

By planning in advance of a crisis you can protect more of your assets. Even in a crisis, we can still protect significant assets.

Result

Home and assets protected from the high cost of nursing home care.