Plan now to protect your home from nursing home long-term care costs and Medicaid estate recovery.

Your home is probably your biggest asset. It is the direct result of everything you've worked for over the years and the things you value most - like your family. If you didn't purchase long-term care insurance when you were younger, you may be worried about losing your home to Medicaid estate recovery if you need to go into a nursing home. 

Many people don't realize that Medicare doesn't cover extended nursing home stays. Nursing home care is expensive. It can cost between $5,000 and $7,000 per month. These costs can quickly consume your entire savings in just a few months. That's the reason a large percentage of Americans who enter nursing homes as private pay patients later need to apply for Medicaid's long-term care coverage to continue to pay for nursing home costs. When you receive Medicaid coverage, you also become subject to Medicaid estate recovery. Estate recovery means, when you die, Medicaid can force the sale of your home and use the proceeds to pay itself back for any benefits you received while you were in the nursing home receiving Medicaid benefits.  

But you can take steps now to cover nursing home costs without losing your home. Here are three things you should know.

  1. You can protect your home.                                                                                                   
  2. You must start planning early - at least five years before you need to go into a nursing home or apply for Medicaid long-term care. This is due to the Medicaid five-year lookback.                                                                                                                                         
  3. There are special types of irrevocable trusts that can protect your home and life savings from Medicaid estate recovery. These trusts also provide protection from probate for the assets in the trust.

This type of planning is complicated and doing it yourself can be risky. Giving away property to family members is usually not a good idea and can result in Medicaid penalties.

For more information about planning options such as irrevocable trusts and whether one is right for you, call us at 704-887-5242 or fill out the form below to schedule a private consultation in our Ballantyne office. 

Image: Shutterstock

DISCLAIMER: This is an advertisement and contains general educational information only. The information offered in this post does not constitute legal advice and reading the information does not create an attorney-client relationship with Nancy Roberts or the Roberts Law Firm. Before taking any action, you should always seek legal advice from an attorney you hire, who advises you based on your specific facts, circumstances, situation, and the appropriate governing law.

 

Nancy Roberts
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