Many people hope they don’t ever need a nursing home, but there are good reasons to pay attention to this in your planning. Research from the US Department of Health and Human Services shows that nearly 70% of people aged 65 and above will need long term care services at some point in their future, and nearly 40% of them will need to stay in a long-term care facility for at least one year.
One out of five will end up staying in a long-term care facility for a minimum of five years. The cost for a nursing home can be substantial, and this is why it’s beneficial to work with an elder law attorney in Pasadena to consider creating an irrevocable trust and discussing other MediCal planning strategies.
An irrevocable trust places your assets inside a trust when you are no longer the trustee or the legal owner of that property. The asset then technically no longer belongs to you and Medicaid cannot take it in order to pay for your medical care.
There may be provisions placed inside an irrevocable trust that allows you to stay in your home with no obligation to pay rent, and you will still have the authority to replace or remove a trustee. Although you may never be able to predict the future, it is wise to create your irrevocable trust now, before you need assistance or have a medical condition that requires daily care. This is because Medicaid uses what is known as a five year look back period.
If you attempt to move your assets around in the five years before you begin needing care, anything that was dispersed as a gift to loved ones can be reclaimed to pay for these medical services. Planning well in advance for the possibility of long-term care can help you.
The good news is that elder law planning for the possibility of Medical in the future is legal, but you should work with a Pasadena estate planning law firm to help ensure you’ve covered all your bases and have a solid plan in place.
