Protecting Your Assets From Nursing Home Costs
Most people go through a period of disability before they die. As a result, you or your spouse may need to be admitted to a nursing home or extended care facility. It’s important to plan now for how you will pay for those expenses, as Medicare does not cover nursing home or extended care expenses outside of hospital.
You can purchase long-term care insurance to pay for nursing home care. You can also plan for Medi-Cal to pay for these expenses. Medi-Cal is California’s Medicaid program. Without advance planning, the assets you wanted to go to your children could be exhausted paying for long-term care expenses.
Attorney William S. Dunlevy has over 40 years of experience helping people protect their assets and their families through estate planning and Medi-Cal planning.
How Will Medi-Cal Planning Benefit Me?
Medi-Cal will pay for nursing home and other long-term care expenses if you are eligible. To become eligible, however, you will need to spend your own assets first. Medi-Cal is a needs-based program, and you cannot own significant assets to qualify.
You could transfer assets to your beneficiaries to avoid spending them on nursing home care. However, such transfers must be completed at least five years before you apply for Medi-Cal. Otherwise, Medi-Cal will disallow those transfers and you would not be eligible until those assets are spent.
Each case is unique, and you will want to discuss your situation with an experienced and knowledgeable lawyer. You may also benefit from the creation of a special-needs trust to provide assets to a person in a nursing home without making him or her ineligible for Medi-Cal.