Assisted living in various degree can cost thousands of dollars a month. There is a legitimate concern that families will have to deplete their entire savings to cover the cost one members' care. It’s important to plan ahead.

Medicare and Medicaid Planning

Joint federal and state programs can assist with payment of long-term care and other medical costs if you’re 65 or older and meet the qualified asset threshold. If you wait too long to make a long-term care plan, you could be subject to a look-back period where the government can impose a penalty or unwind certain transactions.  That's why it is important to work with an experienced Estate Planning attorney. 

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The good news is if you plan in advance, you can use estate planning to protect some of your assets in preparation for the possibility that you might need long-term care.

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Irrevocable Trust

A living trust is a legal document that directs a trustee to hold legal title to certain assets for the benefit of you (or another named beneficiary). An Irrevocable Living Trust cannot be changed or dissolved after created. Although less flexible, an irrevocable trust provides serious asset protection.

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Annuities

An annuity is a contract between you and an insurance company. It is designed to protect and grow your money, and then provide a stream of income to you during your retirement. You pay a lump sum of money upfront to the insurer, and the insurer sends you a monthly check for the rest of your life. An annuity is considered a non-countable income stream as long as the income is in the name of the spouse who isn’t in the nursing home.

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These are just some ideas to consider for your financial asset protection planning.