More than three million Americans will reside in a nursing home at some point this year. Many families cannot predict when their loved one must begin to rely on outside assistance — a sudden illness can cause a previously independent senior to be in urgent need of full-time care. Families should plan for this possibility now so that they can avoid losing everything in order to cover the cost of nursing care.
The importance of careful Medicaid planning
One effective method used to avoid paying a huge bill to the nursing home is to implement an estate plan for long term care asset protection which will ultimately qualify an individual for Medicaid paid long term care at a nursing home. Note, however, that Medicaid imposes a five year penalty term for any assets that have been gifted or transferred.
The penalty term starts when the Medicaid applicant enters the nursing home and is otherwise eligible for Medicaid paid long term care.
The average daily cost of a nursing home in New York City exceeds $400 per day. Without careful planning, your assets may be lost to the cost of long term care.
Consult with an experienced Medicaid planning attorney to be sure you are doing what you can to preserve your valuable assets.