Some elderly or incapacitated may need care as they get older, whether in the form of home health care or nursing home care. The problem many elderly face is the cost of nursing home care which can be anywhere from $10,000 to $15,000 a month. For just a one year stay, the cost can be $180,000. After a person has worked hard all his or her life, the last thing one wants to do is waste that money on nursing home care. With proper planning, an elderly or incapacitated person can receive the care they want and safe guard the money they worked hard for during their life. Why should you pay $15,000 a month when Medicaid can pay those bills?
It is important to plan ahead to avoid paying penalties to Medicaid. With proper planning, assets can be protected from the five year Medicaid look back period. The longer you wait, the longer it will take to fully take advantage of the protection you can receive.
There are a variety of tools that be used to safeguard the assets you worked hard for during your life time, including the creation of an irrevocable trust, gifting, transferring money to annuities, etc. It is important to consult with an elder law attorney who can guide you through the difficult and complex Medicaid eligibility system.
