Imagine working hard for 40 or 50 years, saving prudently, and investing wisely to amass a decent nest egg for your Golden Years – only to see it all wiped out in a matter of month because of long-term care costs. The reality is that this happens all the time. Don’t lose your assets to long-term care costs. Plan ahead now by incorporating Medicaid planning strategies into your overall estate plan.
Most people don’t really understand how expensive long-term care can be. In the State of Illinois the cost of a year in a long-term care facility will cost you, on average, $74,643 for a private room. For about$10,000 less you can get a semi-private room. Now consider the average stay in long-term care is 2.5 years. That means that the average person can expect to spend $188,608 on long-term care during his or her life. Do you have that kind of money to spare? If so then you can afford to do nothing. For the average person though paying for long-term care out of pocket is not an option.
Furthermore, counting on Medicare is not an option either because Medicare only covers long-term care costs under very limited circumstances and then only for 100 days. Finally, don’t expect your private health insurance policy to help unless you have specifically purchased long-term care coverage at an additional cost. For the average person, that leaves Medicaid as the only option; however, Medicaid has very low income and asset limits that cannot be exceeded by participants of the program. If you failed to plan ahead, that likely means you will have to “spend-down” your assets until you are below the program limits. In essence, you could find yourself in a situation where you are forced to deplete your life savings by paying long-term care expenses before Medicaid will finally pitch in and start covering the costs.
There is, however, a way to avoid finding yourself in this situation. By incorporating Medicaid planning strategies in your overall estate plan before you reach your Golden Years you can protect your assets while ensuring that you will qualify for Medicaid when the time comes that you need coverage.
If you have additional questions or concerns about Medicaid planning, or your Illinois estate plan in general, contact the experienced Illinois estate planning attorneys at Nash, Nash, Bean & Ford, LLP by calling 309-944-2188 to schedule your appointment today.
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