You’ve saved and invested your whole life to be able to pass your wealth to future generations; why let an unplanned health crisis throw off your entire plan? If you end up requiring a Long Term Level of care, it could seriously affect your goal to pass your wealth on to future generations. With Nursing Homes costing upwards of $12,000 a month and assisted living facilities costing $7,000 a month, your entire life savings can be wiped out in just a matter of years. But fear not, there are some things you can do now to protect your assets and estate from the dreaded Medicaid spend-down*.
- Meet with an advisor. An advisor can help you plan for your future and ensure you are setting up future generations to inherit your wealth, not the state.
- Transfer your homeownership. If you own your home, transfer it to your children. That way, your house is untouchable to Medicaid. If you do this early enough, you can also avoid the five year look back that Medicaid requires.
- Invest in an IRA. Did you know, qualified money is not included in your asset base? It is essential to establish an IRA early in life and avoid withdrawing money from it. Medicaid cannot count these accounts in your assets.
- Purchase insurance. Consider purchasing a Life Insurance policy that has a Long Term Care rider on it. The rider can be used while you’re living and helps offset costs associated with Long Term Care.
- Name your children on your accounts. Add your children to your bank account and brokerage accounts; that way, they are considered part-owners, and Medicaid will only be able to take your percentage of assets in the event you need Long Term Care.
- Upgrade your home. If you require Long Term Care and have excess assets, upgrade your home to “spend down” your assets. Improvements to your home are perfectly legal and a great way to spend your assets the way you want.
The Financial Guys have a curated team of people who can effectively help you plan for the future. For a no-obligation consultation with one of our professionals, call us today at 716-633-1515.
*A Medicaid spend-down is the excess money you have above the Medicaid eligibility threshold.
