• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Elder Law » Don’t Assume You Will Never Need Long-Term Care

Don’t Assume You Will Never Need Long-Term Care

July 10, 2020 by Pam Potter

nursing home asset protectionRetirement planning can seem like it is completely focused on the active years that you will be able to enjoy shortly after you put your working years behind you. This is certainly an important consideration, and your golden years can be quite satisfying if you are properly prepared for them.

At the same time, it is wise to budget for the years that will follow when you are not as capable as you once were.

The United States Department of Health and Human Services tells us that seven out of every 10 seniors will someday need living assistance. While it is true that many elders get the help that they need in their own homes from family members and friends, eventually, professional living assistance may become necessary.

Nursing Home Care

There are a number of different reasons why people ultimately reside in nursing homes, and Alzheimer’s disease is probably at the top of the list. It strikes 32 percent of those over 80 years of age. In all, 35 percent of seniors will need nursing home care at some point in time.

Medicare and Long-Term Care Costs

Most people qualify for Medicare when they reach the age of 65. Since it is a health insurance program that is largely intended for senior citizens, you would assume that it would pay for long-term care.

Though it may be surprising, Medicare will not pay for long-term care. It will pay for convalescent care when recovery is expected, but it will not pay for the custodial care that nursing homes provide.

It is not easy to pay out-of-pocket unless your pockets are quite deep. The state of Kentucky places the average cost for a day in a nursing home at just under $200, and in North Carolina, it is $227.  That adds up in a hurry, and the average length of stay is 12 months.

When you mix in the fact that married couples may be looking at two different sets of nursing home bills, the expenses can be overwhelming.

Nursing Home Asset Protection

There is a widely embraced nursing home asset protection solution in the form of the Medicaid program. This government health insurance program does pay for long-term care if you can gain eligibility. Since it is a need-based program, the asset limit is just $2000.

This asset limit is quite low, but some of your property is not considered to be countable for Medicaid eligibility purposes. The most important exemption is your home. You can qualify as a homeowner, but there is an equity limit that stands at $595,000 in 2020.

We are not going to explain all of the different forms of property that are not counted here, but we will provide detailed information in a different blog post.

Lifetime Gift Giving

You can choose to give your loved ones their inheritances in advance in an effort to position yourself with future Medicaid eligibility in mind.

Direct gift giving is a possibility, and you can alternately choose to fund a Medicaid trust. It would be irrevocable so you would not be allowed to take the principal back. You would however be able to continue to receive income that is generated by assets in the trust.

This takes careful planning with the help of a legal professional because there is a five-year look back period. Your application will be denied if you have given large gifts within five years of the date that it was submitted.

Access Our Free Worksheet!

You reached this site because you are looking for information about estate planning and elder law topics, and you are in the right place. We offer a number of resources, and one of them is our carefully prepared worksheet.

This worksheet conveys a great deal of practical information in a simple, easy to understand manner. To get your copy, visit our worksheet access page and follow the simple instructions.

 

  • Author
  • Recent Posts
Pam Potter
Latest posts by Pam Potter (see all)
  • Has Your Estate Plan Been Reviewed? - September 30, 2020
  • Medicaid Allowances for Spouse and Caregiver Child - September 3, 2020
  • Choose Your Living Trust Trustee Carefully - August 26, 2020

Filed Under: Elder Law Tagged With: Medicaid Planning, nursing home asset protection

Other Articles You May Find Useful

Medicaid estate recovery
Advocacy Groups Call for the Eradication of the Medicaid Estate Recovery Mandate
Medicare Part B premiums
An Overview of 2022 Medicare Cost Increases
elder financial abuse
Elder Financial Abuse Is a Looming Threat
Veterans Pension
This VA Benefit Can Give Seniors a Boost
long-term care planning
Will Medicare Cover Living Assistance?
nursing home asset protection Medicaid planning
Longevity Statistics Shed Light on Nursing Home Asset Protection

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT