Long-term care is very expensive, and the majority of senior citizens will eventually need assistance with their activities of daily living. In fact, it is a significant majority. According to the United States Department of Health and Human Services, 70 percent of people who are reaching 65 will someday need help with their day-to-day needs.
If you eventually reside in a nursing home or assisted living community, you are going to be facing some very significant expenses. In the greater New York City area, the average annual cost for nursing home care exceeds $100,000.
It is not uncommon for people to spend multiple years in these facilities. About 10 percent of nursing home residents remain in the facilities for at least five years.
Medicare will not pay for long-term care, so there is a very large gap. Medicaid will pay for long-term custodial care, and it provides a solution for most seniors who are residing in assisted living facilities.
It takes careful planning to qualify for Medicaid without losing everything in the process, because Medicaid is a need-based program.
You may feel as though you don’t have to worry about Medicaid planning because you are still quite healthy as a senior citizen. There may be no history of dementia in your family, and this can bolster your confident outlook.
Without question, there are numerous benefits to be realized when you live a healthy lifestyle. At the same time, you would do well to keep a level head as you consider all possible contingencies.
If you are healthy, you will probably live a long life. As you get older, it becomes more and more likely that you will need long-term care.
According to the Alzheimer’s Association, about 45 percent of people who have reached the age of 85 are suffering from the disease. It is possible that there is no history of dementia in your family because your ancestors did not live as long as you may live given your healthy lifestyle.
You may want to expect the best as you plan ahead for any and all eventualities that may befall you during the latter stages of your life. If you take the right steps, you can be perfectly comfortable financially while you simultaneously prepare yourself for possible Medicaid eligibility.
If you never need long-term care, that’s great. If you do, you will be properly prepared.
Medicaid Planning Special Report
In this post we have provided a little bit of food for thought. If you would like to educate yourself further, we can help.
Our firm has prepared a series of special reports that cover various different estate planning and elder law topics. One of these reports takes an in-depth look at Medicaid planning.
This report is being offered on a complimentary basis, and you can download your copy through this link: Medicaid Planning Report.
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- What You Need to Know about Elder Financial Exploitation - January 25, 2023
- What Is an Asset Protection Trust? - January 18, 2023