If you’re 65 and older, there’s a likelihood that you will need some sort of nursing home stay. It may be for short-term rehab, or something more permanent, such as end-of-life care.
A common concern among many older adults is that a nursing home will take all of their assets, and their children won’t receive an inheritance. But with proper planning, you have the assurance of getting the skilled care you need and the ability to leave a legacy to your loved ones.
More than creating a will
A good estate plan allows you to manage your assets while alive and how they will be distributed after your death. This also includes preparing for the financial decisions you must make if you require long-term care.
Long-term care is expensive, and you could rapidly deplete your assets if you’re not careful. Fortunately, there are some strategies you may want to implement.
A trust is an invaluable estate planning tool. It differs from a will because a trust allows your estate to avoid probate, thus assuring your beneficiaries have the funds to handle all of your expenses rather than waiting for several months while the probate process plays out.
However, a revocable trust doesn’t protect any assets from the Medicaid spend-down. The government will still consider those assets to be in your control. An irrevocable Medicaid Asset Protection Trust removes all assets from your control; thus, they won’t be a factor in determining your Medicaid eligibility. But, timing is critical because Medicaid has a look-back period of five years for asset transfers.
You can also obtain long-term care insurance in Maryland. These types of policies can cover some or all skilled nursing services. You will want to work with someone who can guide you through your options for making long-term care a part of your estate plan.
