How to Protect Assets from the Nursing Home

elderly couple sitting on bench by water
December 2, 2021 Medicaid Planning

If you or a loved one needs to enter a nursing home, you might be worried about losing your nest egg paying the monthly bill. The unfortunate reality is that more than half of seniors will not have enough financial assets to cover their long-term care costs and risk exhausting their life savings in just a few years. Fortunately, with the right guidance, resources, and strategies, you can safeguard your assets and preserve them for your spouse or future generations.


Watch Now: Eliminating the Financial Burden of Long-Term Care


The Key: Long-Term Care Planning

Whether you or your loved one is planning ahead for a future long-term care need or about to enter a nursing home, it’s not too late to plan. In fact, planning is the only way you can protect your hard-earned assets from the nursing home or other long-term care facility. You have two options to plan for your care‚Äďadvance planning or Medicaid planning.


Advance Planning vs. Medicaid Planning

 

Advance Planning vs. Medicaid Planning
At least 5 years before requiring long-term care Timing Already in a facility or about to enter one
Good Health Status Poor
Mostly independent, may require assistance with a few tasks Dependency on Help Mostly dependent, requires assistance with most daily activities
Purchase Long-Term Care Insurance or fund an irrevocable asset protection trust Planning Strategies Purchase a Medicaid Compliant Annuity to preserve assets and accelerate eligibility for Medicaid benefits

 


Read More: 8 Critical Mistakes Seniors Make with Long-Term Care Planning


Long-Term Care Planning Strategies

With advance planning, you have more options to protect your assets from a nursing home or other care facility. The most common strategies are to purchase a Long-Term Care Insurance policy or fund your assets into an irrevocable trust. With Medicaid planning, however, you’re more limited. But it’s important to remember that it’s still not too late. You can purchase a Medicaid Compliant Annuity to preserve your savings and accelerate your eligibility for benefits.


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