Your Life
Many of us are planning to age at home because that is what we want to do. According to some estimates, a home health attendant can cost between $2,000 to $5,000 per month. If needed, the average cost of a nursing home in New York City (for example) is over $10,000 per month, with some facilities charging over $15,000 per month.
Paying privately for these services can quickly bankrupt most middle-class people, even with savings. Most nursing home stays begin with a period of “rehabilitation” covered by Medicare and Insurance, but that only lasts 20 – 100 days. If you still require services after the “rehab period” is over, you will be deemed a Long-Term Care case, and the nursing home will begin seeking payment from you or your family.
The better option may be to try to plan ahead and make yourself eligible for Medicaid benefits. Each state has its own resource limit before eligible for Medicaid benefits. Continuing with New York as an example, the resource limit is $15,450. Most middle-class people own property and have assets over $15,450; therefore, it is not always easy to obtain Medicaid benefits unless you plan in advance. You can start protecting your assets from Medicaid by placing them in an Irrevocable Trust in many cases. This can protect your assets and allow you to become eligible for Medicaid to cover Long-Term Care expenses eventually.
A good elder care attorney should be part of your advisory team. They become invaluable when working through these strategies. If you need a referral, drop us a line.
Why Long Term Care Expenses can Bankrupt You
by Silvagni & Como
|