For many, working is a means of securing their assets for the future so they can retire comfortably. As such, doing what you can to ensure your assets are protected for retirement is essential. However, unexpected costs can put these at risk. One thing many do not consider is how nursing home costs can pose a threat to your assets. Keep reading to learn why this is a risk and how estate planning with the assistance of a Medina, Ohio estate planning lawyer can help protect your assets.
How Do Nursing Home Costs Put My Assets At Risk?
While nursing homes and senior care facilities are great for older adults who cannot take care of themselves or may not have family able to help them, it’s no secret that they are exceptionally expensive in many instances. As such, many may not know how to afford these facilities without putting their assets at risk.
One option many choose is to invest in long-term care insurance. This, like a regular insurance plan, can help cover costs when you enter a nursing home. However, these plans can be expensive, and you may not even enter a home.
Others assume they can qualify for Medicaid. However, to be eligible, you cannot have assets over a certain amount. As such, some are forced to use their assets to pay down their nursing home stay until they qualify for Medicaid.
Can Estate Planning Help Protect My Assets From These Expenses?
If you do not qualify for Medicaid or do not want to invest in pricey long-term care insurance you may not use, you may feel out of luck. However, planning your estate the right way can help you get the care you need without putting your assets on the line.
The first option many invest in to protect their assets is an Irrevocable Trust. This option moves assets out of your name and into the ownership of a Trust. As such, you do not own the assets, meaning they are not valued as part of your estate. This means you may qualify for Medicaid to help pay for your time in a nursing home while leaving assets for your beneficiaries.
Another choice is to create a Life Estate Transfer. Like an Irrevocable trust, this allows you to transfer property out of your name to another person. However, this Transfer allows you to reside in the property for the remainder of your life. Upon your passing, the person you made the transfer to becomes the sole owner of the property. Generally, a Life Estate Transfer can help reduce the value of your estate to help you qualify for Medicaid while protecting your assets.
It is essential to note that Medicaid will often look back at your finances five years before when you apply. As such, you must begin planning early to protect your assets.
At Krause Law, our dedicated legal team has the experience to help you navigate these complex situations. We understand how stressful trying to pay for nursing homes can be. As such, we can help you explore your options to make the best decision for your peace of mind.
