Can A Nursing Home Take All of Your Assets?
If you are an elderly person or have an elderly person in your life, there are many technical, financial, and legal things to consider.
Protecting your assets is one of the challenges most people face as they grow older – especially those who have to deal with mounting medical and home care costs.
You, like many elders, may at some point be transitioning into a nursing home to receive ongoing care – and such places and services can be very expensive.
If you’re wondering what financial challenges you may face when going into a nursing home, learning about what happens to your assets will be the first step to protecting the financial wellbeing of you and your family.
We put together some vital information on what to consider and what to expect when going to a nursing home:
While there’s certainly peace of mind that comes from knowing your needs or the needs of your family member will be met at a nursing home, for many families, it can be a costly option that comes as an extra financial burden.
Even if you are financially stable and do not rely on the help of your family, the fact is that the cost of nursing home care continues to rise, averaging at about $50,000-$100,000 per year.
Medicare doesn’t provide long-term coverage for nursing home care; Medicaid only offers coverage based on someone’s ability to qualify; so – in most cases, individual’s assets must be used before coverage can be provided, and they must have a limited level of income.
Fortunately, you and your loved ones can protect existing assets from nursing home costs – by having a sound estate plan in place.
Irrevocable Trusts
An irrevocable trust is an estate-planning tool that you can use to protect your assets. It cannot be changed or canceled without first receiving permission from the trust’s beneficiary, and by transferring your assets into this trust you let go of your ownership rights
The benefits of irrevocable trust are that in case you have to go to a nursing home these assets become exempt from being used to cover the cost of nursing home care, and any interest or dividends produced by the trust are fully protected.
Asset Transfers
According to the Federal Spousal Impoverishment Act, your spouse’s income is excluded from having to pay for your nursing home care.
Many people choose to transfer a part of their income to their spouses – any income you transfer will be protected under federal law and exempt from requirements to pay nursing home costs.
Hire the Right Estate Planning Lawyer
The cost of the nursing home care can put your personal assets at risk, and consulting with an estate planning attorney is the first step in planning for the future and protecting your assets.
Your estate planning lawyer will provide the resources you need to help you choose the best options for your particular needs. They may include the use of a life estate to allow you to transfer property ownership to a loved one after your death, protecting your property from financial claims; use of personal gifts and annuities to help qualify for Medicaid coverage, and more.
If you’re considering a nursing home and want to know how to protect your assets and ensure that you and your loved ones have everything you need for a financially secure future, you should consult with an experienced and trustworthy estate lawyer.
Get an elder law attorney to help plan for your future – contact Levin Law Group today and receive a free consultation with our skilled and dependable wills and estate attorneys in New York State and New Jersey.