Everyone we speak with says they want to avoid going into a nursing home and want to protect their assets, if they are forced to go there. Looking forward to retirement is an exciting time. During retirement, we will have the time to invest in our hobbies and spend time with our families. Unfortunately, when our health starts to fail, it may become necessary to reside in a nursing home to ensure the appropriate level of medical care. What many people do not realize, however, is that Medicare and most regular health insurance policies do not cover the cost of long-term nursing home care. With the cost of nursing homes soaring past $8,000 per month or even more, it is important that you understand how your potential nursing home requirements fit in with your plans for asset protection.
Assuming your private insurance does not cover long-term nursing home stays, and you do not have a long-term care policy, you will need to pay for this care out of pocket. This means that the assets that you would like to pass on to your friends and family will have to be used to pay for the costs of your extended residential care stay. After your assets are sufficiently drained, you may be able to apply for Medi-Cal, which provides health insurance care to adults with low incomes and few assets, as does Medicaid. Medi-Cal and Medicaid will provide coverage for your nursing home requirements, as well as other medical services, but in order to qualify for coverage under these programs, you will have to have assets and income under specific levels. This means that if you have too many assets, you will have to use these assets to fund your nursing home care out of your own pocket. Only after all of your assets are depleted down to $2000 (single) and $3000 (married) under the threshold eligibility requirement can you receive Medi-Cal benefits. There are some other ways and programs under which you may qualify for Medi-Cal which are unrelated to assets.
With proper estate and Medi-Cal planning, however, you can pass on your assets to your heirs and beneficiaries while maintaining your ability to apply for Medi-Cal. Timing of this estate planning is very important. It is also important to note that some assets are exempt from the total asset calculation, including the family home if at least one spouse will continue to reside there.
If you have questions about protecting your assets while you require long-term nursing home care, contact us today. Our experts in Medi-Cal planning can discuss your estate and what we can do to help protect your assets or qualify you for Medi-Cal. Call us at 818.340.4479 or email us for a complimentary consultation appointment at Info@SirkinLaw.com.
