Long term care allows a person with a chronic illness or disability to maintain an optimal level of functioning. However, this form of care can be very expensive costing more than $7,500 per month. The following are five secrets to help you protect your assets from the high cost of long term care.
- Assets can be protected even if your loved one is already in a nursing home. An elder law attorney can assist you in protecting a loved one’s assets no matter what their situation.
- Protecting yourself starts with good legal documents. This includes wills, trusts, and powers of attorney. Meet with a qualified elder law attorney to determine what estate planning documents are best for you.
- There are many different ways to pay for care. Some of these methods include private pay, long term care insurance, Medicare, Medicaid and Veteran’s benefits.
- There is a five year look back period for any gifts or transfers of assets made within five years prior to applying for Medicaid benefits. These transfers or gifts will result in a penalty period in which Medicaid benefits are denied and you then must pay for care out of pocket.
- Protect your home. You do not have to sell your home to pay for nursing home care. However, you do have to protect your home from the Michigan Estate Recovery Law if you received Medicaid assistance in paying for your long term care.