With life expectancy rising and the average cost of assisted living in the Johns Creek area around $3,700 a month (or $30,000 a year) businesses that cater to the aging population are growing exponentially. Everywhere I look these days I see construction for a new assisted living facility or nursing home. Families often approach me when they realize that mom or dad will need assistance and begin looking at the cost of facilities. While a parent has generally saved some during life, children doing some quick math begin to see that a savings account, IRA, and social security aren’t going to make it very far. Parents are often dismayed at the thought of having to spend everything they worked for in order to receive basic care and are left with nothing to pass on and having to qualify for Medicaid.
Proper planning can help a family save up assets instead of having to spend down for Medicaid qualification.
Advanced Planning: Spending the Least, Saving the Most
- In good health and can qualify for insurance: consider a long-term care rider on your life insurance policy. A long-term rider can avoid the need for Medicaid altogether.
- Good health but insurance is too expensive – If a family believes a parent has more than five years before medical services will be needed, an irrevocable trust can remove assets from a parent’s counted assets on the Medicaid application and allow the trustee and beneficiaries to access the assets and make gifts to cover expenses of the parent.
Emergency Planning: Spending Down, but also Saving Up
- Health Declining- Medical assistance already needed, but over qualify for Medicaid requires a division of assets approach. The applicant shelters a set amount of his or her assets in a trust which will continue to grow in value and the applicant uses the other assets to pay for care during the penalty period. Applicant’s penalty period and assets split will vary depending on the assets.
To see income and asset requirement for Medicaid, follow this link https://www.medicaidplanningassistance.org/medicaid-eligibility-georgia
Our firm works with families to develop both proactive and emergency Medicaid Planning. A good plan is never put in place too early. Contact Grissom Law, LLC today at 678-781-9230 to schedule an appointment to discuss your needs.
Disclaimer
This Blog/Web Site is made available for educational purposes only. In addition, it is available to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.