How can assets be protected from the expense of long-term health care?

Question

My mother is 75 and in declining health. She is worried about the possibility in the future of long-term health care in a nursing home taking her life savings. What is the best legal way to protect one's assets from this situation?

Answer 1

Transfer the assets. Do it now before she is in a care situation because once she is, people can get in trouble for transferring assets to keep the agencies from getting them.

There are attorneys and financial advisors who specialize in elder care.

Answer 2

Unfortunately, there's not likely to be a good answer. Nearly 80% of all American households will see a long-term care scenario, but no one wants to prepare.

You've probably found out that Medicare assistance is extremely limited. The only options are paying out of pocket, insurance, or Medicaid.

You've already stated that paying out of assets is not attractive. If your mother's condition is as you suggest, long-term care coverage is probably not an option, or at least will be extremely expensive (though it can't hurt to try). The final option is Medicaid qualification. Because any assets transferred within the last five years are still included in the calculation, she'll have to actually spend down until she qualifies. Even then, facilities are limited to Medicaid beds available.

First, see what her doctor can declare medically necessary, as Medicare or health coverage may cover some expenses. Next, see an agent who specializes in LTC coverage to see what may be available given her condition. Also, there are prepaid in-home care plans which may be available. Some LTC agents can offer these services as well. Finally, see an elder law attorney.

Answer 3

You can purchase long-term care insurance.

You can have a plan for her care that does not involve living in a nursing home.

The giving away of all assets to qualify for Medicaid is often touted. Do you really want your mother dependent on welfare? Anyway, the lookback period is five years, so that isn't a practical solution.