We help you protect assets if you have to move to a nursing home.
Example: Dad’s health is getting worse. He probably won’t have to move to a nursing home soon, but it might happen in a few years. The nearest nursing home costs $7,000 a month, and the family is worried this would leave Mom destitute. Is there anything they can do?
If Dad doesn’t have long term care insurance (and most people don’t), then the only option is for Dad to pay until he qualifies for Medicaid. People qualify for Medicaid when they have less than $2,000 in “countable resources,” and gifts made within 5 years of the Medicaid application are included in countable resources.
As a result of these rules, many people think they have to “spend down” Dad’s money on the nursing home until it’s all gone. What they don’t understand is that it is not always necessary to do that. There are ways we can help married couples save significant assets to protect the spouse who’s going to stay at home.
Even if Dad is single, we can usually help save part of his money or at least use it on things which will help him or his family. What we can save depends on the situation. Every family is different, but the further in advance planning begins, the more we can help you save.
Example: Mom moved to a nursing home last week. Her income isn’t enough to pay the $8,000 per month cost so she is paying out of her savings of about $200,000. At this rate, her money will be gone in just 2 years. Is it too late to save any of her money?
Lawyers refer to this as a “crisis case.” Many people assume that it’s too late to do anything to help Mom save any money. While it is true that the more time we have, the more money we can help families save, we can usually help families save part of Mom’s money even in a crisis case. Saving some money can be of great help to Mom in her final years, as it allows money to be spent on clothes, TVs, the beauty shop and other things that Medicaid doesn’t cover.