Long Term Care Strategies
What Can Be Done to Help Financially when You Already Need Care?
If you or a loved one needs Long Term Care you are probably worried about how long you can afford the monthly cost. Long Term care costs can run from $3,000 a month to over $10,000 a month in Wisconsin. According to the US Department of Health and Human services, of the 70% of Americans who are projected to need Long Term Care, half will be broke within 6 months.
There are a number of strategies that might be able to help. There are Veterans Benefits for this that most veterans are not aware of, and if they are, may have been told (incorrectly) that they don’t qualify. Romeo Raabe works with several attorneys who specialize in this area. Contact him to see if you qualify for these benefits.
There are also strategies that can convert a sum of money into an income for the rest of your life. Traditionally, this was based solely on your chronological age. If you already need care however, you may have a significantly shorter life expectancy than the “average” person of your gender and chronological age. There are strategies that take your poorer health into account. These strategies can convert some existing assets into an income that can pay for your care for the rest of your life, and still have assets remaining for your heirs.
If you don’t have liquid assets and your health allows you to live at home, it may be possible to use money from “bank of house”. These funds might even be obtained through a reverse mortgage. It would be far preferable to use house assets to pay for care at home, than to sell the house, spending down to $2000, and then end up in a nursing home under a welfare program called “Medicaid”.
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Medicaid and Irrevocable Funeral Trusts
Medicaid’s asset limit for single people is $2000. This means you must spend down all assets to this level before you qualify. The house, vehicles, cottage, savings, IRA’s, mutual funds and annuities, all must be spent down. Even your life insurance must be cashed in (over $1500 face amount) to qualify for Medicaid. The $2000 goes back to the state after your death, so your children may be “passing the hat” to pay for your funeral. This is a very unappealing thought for many people.
Medicaid allows you to set up an irrevocable trust to hold funds for final expenses.“Irrevocable” means once it is set up, it cannot be changed, and that the trust is safe from creditors, nursing homes, Medicaid, lawsuits - and even you! Even though it cannot be touched by anyone, it earns interest. Unlike life insurance, it is immediately available at death to pay for final expenses. Your family chooses where and how much to spend. Whatever is not spent is refunded to the estate of the deceased.
We can set up these Irevocable Trusts of up to $15,000. Some people decide to wait. The time to do this is now, while you are still able to, before you have spent your money on paying for long term care.
Need more information?
Take a look at Frequently Asked Questions about Irrevocable Funeral Trusts and Contact Us with ALL of your Questions! We're here to Serve You!