Most people expect that a retirement home is going to cost them some money, but many seniors and their families have no idea just how much nursing home costs can actually be. You should do everything that you can to protect your assets and make sure that you are not spending too much on a room in a nursing home. A Woodland Hills, California estate planning attorney may be able to help you with this.
Can a Trust Help Protect Me From Nursing Home Costs?
One way to protect yourself from nursing home costs is the use of a trust. There are many different types of trusts though, so which works best for you here? Usually, an irrevocable trust is a good choice.
When you set up this kind of trust, you are transferring all of your assets to it. A trustee, one that you have chosen, is now in charge of the assets. They are not considered a part of your estate. This can lower the value of your estate, making you eligible for Medicaid.
When you qualify for Medicaid, you can have that pay your nursing home costs. Just know that you would have to set this up a few years in advance, so consulting our estate plan lawyers should be done sooner rather than later!
Can Giving Gifts Help Me With Nursing Home Costs Later?
Giving gifts to your loved ones before you pass away can also affect the value of your estate and your potential nursing home costs later. There is only a certain amount that you can give away each year to each person, so consult with our estate planning lawyer and your accountant to figure out the best way to do this.
When you qualify for Medicaid, the program will look into your past transactions. So it is wise to do most of this gift-giving at least five years before you would begin thinking about being checked into a nursing home.
Why Do I Want to Qualify for Medicaid?
When you can qualify for Medicaid it can help you cover your nursing home costs. The issue for some older people is that they have too many assets or they still have income, and that disqualifies them if they want to get Medicaid coverage. Consulting with an estate planning lawyer early can help you protect your assets and qualify for Medicaid coverage later on so that you have something to leave to your loved ones.
Talk to an Attorney Today
If you are ready to protect your assets and your beneficiaries, contact the Law Offices of Yacoba Ann Feldman. Our lawyers are ready to help you make a plan that can help you ensure that there are fewer entities coming for a piece of your estate after you are gone.
