Elderly people often require assistance while doing their activities of daily living (ADL). While some individuals receive long-term care at their residence, others get the assistance they require in a nursing home or facility specializing in assisted living. This assistance, called long-term care is very expensive, and many aged persons worry that all their savings will be used up to pay for this assistance. Hence after a few years, the elderly are concerned that there will have no money for their daily expenses. Individuals who do not wish to use their own assets for paying all the long-term care expenses are interested in finding out if it is possible to use Medicaid, the public health insurance program in the United States, where the government pays for the long-term care of elderly citizens.
Protecting assets from the nursing home
Many older persons are interested in “Protecting assets from nursing home” which means finding out if the person is eligible for Medicaid for payment of long-term care. This will help ensure that all the savings are not spent on paying for nursing care. Most people have worked very hard for decades, to save some money for their old age, and do not want the money to disappear paying for extremely expensive nursing assistance. Proper planning can help a senior citizen protect his assets, and get Medicaid or other government benefits, without spending all the assets. Most people would like their children or other family members to inherit some of their savings, instead of using all their savings for paying medical and healthcare expenses.
Asset protection for healthy individuals
Individuals who are fairly healthy and will not require nursing and other assistance for at least five years have multiple options for asset protection. The elderly person should gift assets before the “look back” period of five years, and usually trusts for asset protection are used. Alternately the elderly person should purchase financial products like life insurance policies and annuities that have riders for long-term care. The pension protection act of 2010, ensures that most insurance policies have better terms for paying elderly assistance expenses. Individuals who do not wish to invest in financial products, or give away their assets, should plan their estate properly, hiring an elder law attorney who may be given the power of attorney to handle the state. Only attorneys specializing in elder law should be consulted.
Asset protection for elders in nursing homes
If the elder is already receiving assistance in the nursing home, to protect assets, he or his family members should hire a reputed attorney specializing in elder law. The attorney will also have the power of attorney to make an asset plan to protect the assets of his client. If the elder person is competent, the attorney will consider his opinion while taking a decision. Experienced and reputed elder-law attorneys are aware of the rules which allow the assets of the elderly individual to remain protected so that they are not all used for paying the eldercare expenses, even during the five-year period for “look back”.