Leading estate planning attorney Christopher S. Fowler Attorney of the Orland Park Law Office of Michael T. Huguelet, P.C advises that nursing home expenses can deplete assets quickly if not planned for. For more information please visit https://www.hugueletlaw.com
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As long term care costs in the US continue to spiral upward, Attorney Christopher S. Fowler has revealed the reality of what happens to a person's assets when they seek nursing home financial support from Medicaid.
For more information please visit https://www.hugueletlaw.com
Having scrimped and saved for most of our lives, and worked hard to build up a comfortable nest egg, it can be truly frightening to contemplate how these hard earned assets can be quickly eaten away when nursing home care costs are factored in.
Mr. Fowler asserted that while nursing home care is undoubtedly expensive, a popular misconception is that couples or individuals will have their homes and assets seized to pay for such care.
He advised that Medicaid determines the assets available to pay for any nursing home care before allowing someone to qualify for Medicaid benefits as payment. The unfortunate reality is that the cost of nursing home care may create a substantial burden on a family or spouse for payment for a loved one’s nursing home care, and the costs of care will likely run into tens of thousands of dollars every year.
Fowler said: "Bear in mind that Medicaid doesn't cover nursing home care for the long term. It is geared to short-term coverage and based on necessity."
While the transition to a nursing home can be challenging, the impact on a couple's financial situation can be even starker.
Ultimately, a person's home may have to be used to cover long-term care costs. Many may require Medicaid assistance to cover some bills, but the flip side is that the state may seek to reimburse those costs, a term called the right of recovery.
Fowler said that if a married spouse requires long-term care, the other spouse can remain in their home. However, the government will keep track of the financial help and could put a lien on the house to recoup or settle any unpaid long-term costs.
If a spouse in the nursing home survives their spouse living at home, then the state could force a sale of the home to fund the nursing home costs. The situation can be complex, though, particularly if an adult child lived in the house and was a caregiver to the nursing home resident for two years or more.
He added: "In such circumstances, the homeownership can be transferred without a penalty, but it is highly advisable to seek guidance from an estate planning attorney."
‘’One option, albeit planning for the long-term, in protecting assets is to transfer them before applying for Medicaid. They can be transferred to the intended parties. However, there is a 60-month lookback, which means any assets transferred in that period are still considered yours and will potentially carry a penalty.’’
He said, "If you don't have a co-dependent or are single, the home must be sold to qualify for assistance. If you die before the house sells, a lien could be placed on it, and some or all of the proceeds may be used to reimburse the state for the cost of your care.’’
"However, there are several options to combat assets being whittled away or a person being taken advantage of and suffering financial abuse. Before making any decisions, review the information with an estate planning lawyer to ensure your actions are correct."
Among the best options available is to utilize trusts to shield and protect assets. These are just one of the sectors of estate planning. Trusts are used to hold assets for a beneficiary and can be used at their choosing.
One option is a revocable trust, which essentially distributes and protects assets. While ideal for families with significant assets and accounts, one will not protect assets from long-term care costs.
Deploying an asset protection trust helps protect the assets, such as property, if a person needs long-term nursing costs. It also ensures one spouse won't lose the family home to pay for the other's long-term costs.
He said one drawback was that it won't provide immediate protection as assets should be in the trust for at least five years to be protected.
These trusts and financial tools can be used as part of a wider estate-planning strategy to protect assets from being pounced on as a person enters later life and to provide a solution for their spouse and extended family. Fowler concluded that an estate-planning attorney will provide further details on the best options, as there is never a one-size-fits-all approach to estate planning.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Christopher S. Fowler
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Organization: Law Office of Michael T. Huguelet, PC
Address: 10723 W 159th St, Orland Park, IL 60467, United States
Phone: 708-722-8442
Website: https://www.hugueletlaw.com
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