When our loved ones grow old and become incapable of caring for themselves, we do our best to care for them as much as possible. However, due to various personal reasons, some family members acquire the assistance of nursing homes to ensure that their elderly loved one is properly cared for.
When going for this option, it is essential to meticulously prepare for all possible financial scenarios, especially since nursing homes can be costly. If you fail to manage your assets well, nursing home payments may slowly drain your funds.
Researching government policies on nursing home costs and assistance
Generally, regular health insurance and government benefits, like Medicare, do not cover long-term elderly care. Nevertheless, one government assistance can be an option for those looking into long-term care: Medicaid. Connecticut’s HUSKY C program allows senior citizens to avail of health care benefits, including nursing home care.
However, not all seniors can avail of this program. Only those in the low-income bracket can apply for this financial assistance. Moreover, if the government tracks recent asset transfers before the application, they might not approve it.
Reducing the value of your assets
If your total asset value will likely make you ineligible for Medicaid, you can buy a Medicaid-compliant annuity. Through this method, you will deposit a lump sum of cash to the annuity, which will be subject to investment and will return to you as income. By paying the lump sum, the value of your assets decreases, and you may be able to qualify for Medicaid.
Considering estate planning tools
Estate planning tools like trusts can help shield your assets from nursing home care debts. For instance, nursing homes cannot access funds from irrevocable trusts since these assets are no longer under the ownership and control of the settlor.
With decisions like acquiring nursing home care, time is essential, but carefully considering available options is equally important. Looking into all options can help you make the right choice for yourself or your loved one.