As people age, they spend more on healthcare and assisted living expenses. Therefore, when the time comes and you need long-term care in a nursing home, the services can be expensive and take a real bite out of your assets.
Unfortunately, most health insurance covers don’t cover assisted living expenses. However, with proper planning, you can protect your assets when you go into a nursing home. Keep reading to learn how you can do that.
1. Purchase long-term care insurance
This type of insurance covers assisted living, nursing homes and home healthcare for individuals with conditions or chronic illnesses that prevent them from performing their daily activities. However, this type of coverage can be expensive and may not have cash value if you don’t go into a nursing home.
2. Gift your loved ones early
While there’s no way you can tell when you’ll need long-term care in a nursing home, gifting your loved ones ahead of time will help protect your assets from collectors after you pass on. What’s more, if you use Medicaid, any assets you may have transferred within the past five years before entering a nursing home facility may be seized after your death. Therefore, consider transferring funds to your family early to ensure they can legally keep the gifts.
3. Start Medi-Cal planning
If you live in California, you can consider Medi-Cal as part of your life care planning. By planning early for Medi-Cal eligibility, you can get the benefits you need and still protect your financial assets. Some of the benefits of Medi-Cal planning may include the following:
- You can keep your home and other assets
- It can lower or eliminate your nursing home bills
- You can comfortably pass on your inheritance to your loved ones
- You can protect your savings and financial future
With the spiraling healthcare costs, you may be worried about the strain nursing home costs can cause on your nest egg. Therefore, protecting your assets should be a priority. Consider seeking legal guidance to help you determine the best way to protect your assets from nursing home costs.