Plan For Long-Term Care And The High Cost Of A Nursing Home

The eventuality of needing nursing home care or long-term care is a concern for many people. The cost of long-term care and in-home care is beyond what most people can afford. If you or a spouse would need long-term care, could you afford it?

At Sikov and Love, P.A., we can assist you with long-term care and nursing home planning. Our Pittsburgh long-term care attorneys provide advice and legal services designed to fit your needs.

The Financial Reality Of Long-Term Care Costs

Average nursing home care costs in Pennsylvania are around $12,000 per month, and specialized in-home care can be even more. Without a solid plan, these substantial expenses can rapidly deplete a lifetime of savings and assets, impacting not only your care but also the financial security of your loved ones. We can help you strategize to manage these potential costs.

Why Proactive Planning Is Crucial

Proactively addressing the possibility of long-term care is one of the most significant steps you can take to protect your future and your family’s well-being. Waiting until a crisis occurs often limits your options and can add immense stress during an already difficult time. Early planning with Sikov and Love, P.A.‘s, experienced elder law attorneys allows for the implementation of effective asset protection strategies, maximizes your choices for care and provides invaluable peace of mind. A personalized plan ensures your wishes are honored and your legacy is preserved.

Would you like to learn more about long-term care and nursing home planning for yourself or a loved one? Contact our elder law attorneys at Sikov and Love, P.A., to arrange your consultation. Since our founding in 1952, we have set a standard for quality legal services, including elder law, for more than 25 years.

Qualified To Handle Your Concerns And Protect Your Assets

Our firm has the resources and knowledge to successfully help you and your family navigate the various legal issues that come with aging. If you are concerned about paying for long-term care and protecting your assets, we can help.

Effective Asset Protection Strategies We Utilize

We thoroughly analyze your income, assets, insurance and other finances to develop an asset protection strategy for you. It is possible to protect your assets from the high cost of nursing home care. Protecting assets enables the spouse remaining at home to maintain his or her standard of living.

Our firm is knowledgeable on the methods available to protect assets, including:

• Irrevocable trusts, including irrevocable burial trusts: Assets placed in an irrevocable trust are generally excluded from your countable assets for Medicaid eligibility after the look-back period. This protects them from nursing home costs, helping secure your spouse’s financial stability and offering peace of mind.
• Immediate annuities: An immediate annuity changes a lump sum into a guaranteed income stream, helping meet Medicaid’s asset limits by converting countable assets into permissible income. This can aid Medicaid qualification while providing funds for expenses; correct structuring is vital.
• Long-term care insurance: This insurance covers long-term care costs (e.g., nursing home, in-home care), providing dedicated funds that reduce the strain on your savings and assets. Early investment can be a key part of your plan.
• Converting countable resources into exempt resources: Medicaid distinguishes countable assets (which affect eligibility) from exempt ones. We guide you in using countable assets to acquire exempt ones (e.g., paying off a mortgage, home repairs), helping you meet asset limits while retaining value permissibly.
• Spend downs: A spend down reduces your countable assets by paying for permissible goods/services (e.g., prepaid funerals, debts) until Medicaid’s asset threshold is met. Careful planning ensures compliant and effective resource use.
• Gifting: Gifting assets can lower your countable assets, but Medicaid’s five-year look-back period means recent gifts can cause penalties, delaying eligibility. We advise on correct gifting as part of a long-term strategy, clarifying all implications.

When properly implemented, each of these strategies can play a crucial role in a comprehensive plan to safeguard one’s financial future against the substantial costs of long-term care.

Common Questions About Long-Term Care Planning

Navigating the complexities of long-term care planning often brings up many questions. We’ve compiled answers to some of the concerns we frequently hear from clients:

What is the difference between Medicare and Medicaid, and how do they impact long-term care planning?

Medicare typically covers short-term skilled nursing care after a qualifying hospital stay but does not pay for ongoing, long-term custodial care. Medicaid, a joint federal and state program, can cover long-term care costs for eligible individuals, but it has strict income and asset limitations. Effective planning often involves strategies to meet Medicaid eligibility while preserving assets.

Can I give away my assets to my children to qualify for Medicaid?

While gifting can be a strategy, it must be done carefully and well in advance. Medicaid has a “look-back” period (currently five years in Pennsylvania) for asset transfers. Gifts made within this period can result in a penalty period, delaying Medicaid eligibility. We can advise on appropriate and compliant gifting strategies.

How far in advance should I start planning for long-term care?

The sooner, the better. Ideally, planning should begin at least five years before you anticipate needing care, especially if strategies like gifting or certain trusts are considered, due to Medicaid’s look-back period. However, it’s never too late to explore available options, even if care is needed more immediately.

Contact A Pennsylvania Nursing Home Planning Attorney

Our firm interacts regularly with caseworkers from the Department of Human Services, as well as the staff of nursing homes and assisted living facilities. We understand that you have many unique needs and concerns regarding paying for your care, and we can help you. Please contact a Pennsylvania nursing home planning lawyer at our firm to learn how we can help you address these issues. Call us at 412-567-1236 or fill out our online form.