Medicaid Planning

Long term care insurance can be a great way to fund long term care. However, sometimes folks don’t look into it until the premiums are too high because of age or health condition. It is wise to look into this type of insurance early while it is still affordable. Long-term care insurance can be purchased on its own or as a rider on a life insurance policy or other investment.

Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to help them with activities of daily living such as bathing, dressing, or eating. It may be possible select a range of care options and benefits that allow you to get the services you need, where you need them. It is also important to be aware that premiums may increase over time.

To receive Medicaid for Long Term Care, an individual must be medically and financially eligible. There are programs where the patient can receive care at a care center or at home. To receive Medicaid help while at home an individual must qualify for a waiver. One such waiver is the “New Choice Waiver.”

To receive Medicaid to pay for your nursing home stay, the rules can be complex. For a single person there is an asset limit of $2,000 and are allowed to keep $45/month income for personal needs and the rest is spent on care with some exceptions. Generally a person can own a home and still qualify for Medicaid for long term care, so long as they don’t have equity of more than $536,000 or more. However, the state will come back after the patient’s death to collect on a statutory Medicaid lien for monies provided. When applying for Medicaid, the applicant must disclose all assets and income sources, as well as any transfers not for value (gifts) made within the past 60 months, this gifts are subject to a penalty wait time.

For a married individual entering the nursing home. Their spouse may be able to keep more assets to prevent spousal impoverishment. These rules are more complex and Allen Law Office PLLC can help you determine the best strategy for your unique situation.

Nursing home and assisted living services are more common than ever. These facilities fill an essential role in our communities. However, exceptional care costs money. According to a 2013 Genworth study, the average cost of nursing home care in Utah per month was around $5,200 and the average assisted living cost per month was right around $3,000.

Long term care costs can drain an estate about as fast as anything. That is why it is imperative to have a long term plan. Having adequate liquid assets, long term care insurance, or proper Medicaid planning are some of the ways to make sure you are prepared. Allen Law Office PLLC specializes in estate planning with a focus on addressing long term care needs. Estates can save hundreds of thousands of dollars in the right scenario if proper planning occurs. Please contact us for an initial consultation.