WELCOME TO OUR  LONG TERM CARE ASSET PROTECTION CLASS
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WELCOME TO OUR LONG TERM CARE ASSET PROTECTION CLASS. Presented by ESTATE PLANNING & ELDER LAW SERVICES, P.C. WHY SHOULD I CARE ABOUT LONG TERM CARE?. Persons aged 65 to 69 years face a 1 in 2 risk of entering a nursing home. 1 1 House Select Committee on Aging.

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WELCOME TO OUR LONG TERM CARE ASSET PROTECTION CLASS

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WELCOME TO OUR LONG TERM CARE ASSET PROTECTION CLASS

Presented by

ESTATE PLANNING & ELDER LAW SERVICES, P.C.


WHY SHOULD I CARE ABOUT LONG TERM CARE?

Persons aged 65 to 69 years face a 1 in 2 risk of entering a nursing home.1

1House Select Committee on Aging


WHY SHOULD I CARE ABOUT THE COSTS OF LONG TERM CARE?

  • The average monthly cost of “attendant” nursing care in Michigan for 2008 is $6,191.00.1Skilled nursing care can be three times as much.

  • 1MI Department of Human Services

  • WHAT DOES LONG TERM CARE COST?


    • If discharged from a hospital, Medicare only covers “skilled” nursing care costs for up to 100 days, so long as skilled care is required

    • 20 days are covered at 100%, but you are required to pay a co-payment for the next 80 days unless your Medigap policy pays for the deductible

    • Benefit renewable via the “60 day/3 day”rule

    • Medical Insurance does not pay for Nursing Home care

    AREN’T NURSING HOME COSTS PAID BY MEDICARE OR MEDICAL INSURANCE?


    • Pros

    • Covers assisted living and in-home care, not just nursing home care

    • Provides most flexibility

    • Prevents loss of assets with least complications

    • Cons

    • Eligibility requirements

    • Cost prohibitive

    • Loss of investment/ premiums if not used

    • Strength of insurance company

    • If you can afford it - get it!

    EVALUATING LONG TERM CARE INSURANCE


    • In most cases, by planning ahead, you can shield a substantial percentage of your assets from the cost of long term care.

    • Planning ahead requires the creation of a flexible estate plan including, at a minimum, “Medicaid friendly” Financial and Medical Powers of Attorney. Sometimes action is required now versus later.

    WITHOUT LTC INSURANCE CAN I PROTECT MY ASSETS FROM LTC COSTS?


    • Medicaid is a Federal Program established by the Social Security Act.

    • Medicaid exists to ensure the availability of essential healthcare services, including Nursing Home Care, for people meeting certain income and asset requirements.

    WHAT IS MEDICAID?


    • The rules for Medicaid eligibility differ somewhat depending upon whether the applicant is single or married.

    • However, for both married and single applicants, to become Medicaid eligible three tests must be met:

    • Needs/“Seven Doors” Test

    • “Countable” Income Test

    • “Countable” Asset Test

    MEDICAID ELIGIBILITY RULES


    CAUTION!

    ELIGIBILITY RULES JUST CHANGED!

    • On 2/8/06 President Bush signed into law the Deficit Reduction Act of 2005. Michigan’s DHS implemented these and other substantial changes throughout 2007.


    • If an applicant meets the income eligibility rules for Medicaid, asset eligibility can often be achieved by:

      • Strategic gifting

      • Transforming countable assets into exempt assets

      • Transforming countable assets into unavailable assets

      • Utilizing Medicaid Type A or B Trusts & SBO Trusts

      • Maximizing the Community Spouse’s PSA

    BECOMING MEDICAID ASSET ELIGIBLE


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