• 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    • Is Your Estate Plan Outdated?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 » Longevity Statistics Shed Light on Nursing Home Asset Protection

Longevity Statistics Shed Light on Nursing Home Asset Protection

July 22, 2021 by John Potter

nursing home asset protection Medicaid planningPeople have a tendency to project strength, and this can be a positive attribute in many instances. However, as you get older, the air of invincibility can start to become dangerous because no one can escape the eventualities of aging.

Life Expectancy

You probably expect to be able to enjoy active pursuits during your retirement years, and it can be hard to imagine a time when you will have significant physical limitations. It becomes easier when you understand the life expectancy for someone in his or her mid-60s.

At that point, your anticipated longevity is somewhere in the mid-80s if you do not have any life-threatening health problems. When you digest this statistic soberly, you can see that your capabilities may change significantly during your retirement years.

Living Assistance

The change in your ability to handle all of your responsibilities can come about rapidly after an injury or illness. You may be able to get limited help from family members and friends to take care of certain tasks, and this won’t cost you anything financially.

However, at some point, you may need some assistance from paid in-home caregiver, or you may require nursing home care.

The annual price tag for a private room in a Charlotte area nursing facility is in the vicinity of $100,000. In Ashland, Kentucky, the median cost for a private room was just over $85,000 in 2020.

Medicare and Custodial Care

Since most people do not think about the prospect of long-term care until it is unavoidable, some assume that Medicare will pay for it if you ever need it. This makes sense since Medicare exists to address the health care needs of seniors.

Unfortunately, this assumption is false — Medicare does not cover a long-term stay in a nursing home, and it will not pay for professional in-home long-term care.

Medicaid and the Home and Community Based Services Waiver

Medicaid has become the de facto source of long-term care insurance in the United States by default. This program will pay for custodial care if you become eligible, but it is only available to people with limited resources.

There is also a Medicaid Home and Community Based Services (HCBS) waiver that will pay for some in-home assistance.

In determining eligibility, your home and personal belongings are not counted along with one motor vehicle, but there is a $2000 limit on most assets. With regard to the home, there can be an equity limit that stands at $603,000 in Kentucky and North Carolina this year.

Medicaid Estate Recovery

If you qualify for Medicaid to pay for long-term care, the program will seek reimbursement from your estate after your passing. This is why you would have to take special steps to protect your home.

One exception to the recovery rule applies if your spouse and/or a dependent child is residing in the home at the time of your death, but with planning you may have other options for protection.

Five-Year Look Back Period

When you digest all this information, you may resolve to give your children their inheritances in advance if you find that you need long-term care. The powers-that-be do not want people to be able to do this, though, so there is a five-year look back period.

You can give gifts or convey assets into an irrevocable trust to remove assets from your name. However, you are generally penalized and your eligibility delayed if you divest yourself of assets in the five years before you submit a Medicaid application.  If you cannot plan five years ahead of time, you still may have some options to preserve assets; but your options are more limited.

Take Action Today!

Because of the five-year look back period, you have to be proactive about the implementation of a nursing home asset protection plan. If you use a trust, in particular, you could continue to receive income that the assets generate, and this can help you maintain your lifestyle.

We can explain all the details if you schedule a consultation, and there is no time like the present. You can set up an appointment at our estate planning office in Ashland, Kentucky if you call us at 606-324-5516.  Our number in Florence, Kentucky is 859-372-6655.

The number in Charlotte, North Carolina or Huntersville, North Carolina is 704-944-3245, and you can use our contact form if you would rather send us a message.

 

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Elder Law Tagged With: Home and Community Based Services Waiver, 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?
monthly maintenance needs allowance
Medicaid Answers: Can a Married Person Keep Their Spouse’s Income?

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