One of the things that many people don’t consider as they age is how to protect their assets if they need to enter into a nursing home or seek long-term care.
When you start planning for your long-term care needs, an asset protection plan can help you qualify for services like Medicare and Medicaid and avoid losing everything you’ve worked so hard to earn and hope to pass on to your heirs.
How long-term care expenses could threaten your assets
Long-term care is expensive. The median rate for Massachusetts nursing home care in 2020 was $162,425 annually for a private room and $151,475 for a semi-private room. Even if you only need to go into assisted living, a private room is over $73,000 a year.
It’s easy to see how you could quickly eat through any savings you have and even need to sell property or assets to afford that expense. Long-term care planning allows you to look into insurance coverage for those needs as well as to find ways to protect your assets and remove them from your estate to make it easier to receive Medicaid without having to spend those assets down first.
How asset protection planning can help
It’s often possible to protect a lot of your assets from seizure or a forced spend-down for your long-term care through proper advance planning. Some of the focal points of asset protection planning include:
- The use of gifts while you’re alive to reduce the size of your estate
- The use of various trusts to remove assets from your direct ownership
- The use of legal strategies to reduce unnecessary taxes
- The use of powers of attorney and advance directives
In short, good estate planning is about much more than merely creating a will. Instead, it looks ahead to all future possibilities and tries to create a safety net that will apply. Our website has more on Medicaid planning, long-term care planning and other supports to help you protect your assets. Please continue reviewing our site to learn more.