Have you and your aging parents thought about what might happen if one or both were to need nursing home care? Do you and your parents have concerns over the possible expense of a nursing home? Are you and your parents also concerned that after a lifetime of working hard and saving it may all have to be spent on a nursing home? As we celebrate National Elder Law Month during the month of May, the topic of our aging seniors paying for nursing home care comes to the forefront of our minds in our law office, as we think of ways to help our clients, their loved ones, and our community.
Concerns about the rising costs of nursing home care are real. The average nursing home may cost $8,000 per month or more, which can go through someone’s life savings quickly, especially when there are other medical costs and the nursing home stay is permanent. Medicaid may pick up the bill, but there is an income and asset test in each state to determine whether someone may qualify for Medicaid. In some states it may require a person to go through his or her life savings first, before Medicaid steps in.
During National Elder Law Month, consider taking the time to sit down with your parents and discuss long-term care planning together. There may be several ways you and your parents can protect their assets and prevent them from losing their life savings to a nursing home. Let us share the following with you and your parents.
1. Encourage your parents to start planning now. Are your parents still healthy and able to live in their own home? Take this time to learn about what it would cost if they needed to enter a nursing home at some point in the future. Meet with an elder law attorney to see if there is any planning that could be done right now.
2. Encourage your parents to meet with a qualified elder law attorney. There may be multiple strategies that can help shield the life savings of your parents from a nursing home. By starting their planning early your parents may be able to take full advantage of all available options. A qualified elder law attorney can definitely help you with this planning. For example, in most states, Medicaid has a 5-year look-back rule that takes into account all assets transferred to someone else within the last 5 years when determining if someone qualifies for Medicaid to cover a nursing home bill. By starting your planning now, you may be able to shield more of the savings of your parents.
3. Encourage your parents to transfer their assets if necessary. If your elder law attorney advises your parents that transferring assets may be a good strategy, and they agree, they may wish to start now. Your parents may be able to make a tax-free gift to each of their children, grandchildren and spouses, without triggering gift tax consequences but it is important that your parents consult with their attorney first. This can be an easy way to start the process.
To learn more about long-term care planning strategies, we encourage you to speak with us. At the end of the day, elder law planning is not just for you. Instead, it is for the ones you love most. If we can answer any questions for you on putting the long-term care planning strategies you need in place, please do not hesitate to let us know. For more information, please reach out to our office and schedule a time to meet.