As we age, we face increased physical and medical needs that affect our ability to live independently. Many people who have continued medical needs require private nursing home care or long-term care. They are dismayed to find that their health insurance policies do not adequately cover these expenses if they are covered at all. This is a very real problem when rooms at these facilities can easily run over $100,000 per year.
The costs of aging in this country are unaffordable for many people. Even for people with wealth, the costs of aging have great potential to completely deplete that wealth. If you speak with an estate-planning attorney, you can explore methods of protecting our wealth for your family while also providing for your own long term needs.
Trusts Protect Wealth For Loved Ones
A trust is a legal arrangement in which a person transfers their property into the care and control of a third party. This third party is responsible for managing and distributing property and payments to beneficiaries under the trust documents and ultimately disburse the remaining property at a predetermined time. If you put property into an irrevocable trust, you are legally relinquishing your ownership of that property.
Why would anyone do this? In the context of long-term care, relinquishing the property allows a person to meet the income and property thresholds necessary to qualify for Medicaid. Medicaid is the government health program that covers nursing home and long-term care as a last resort for low-income individuals.
Putting assets into an irrevocable trust can provide for your spouse or other beneficiaries while allowing you to qualify for Medicaid. It also prevents the Medicaid program from seeking to recoup costs of your care from your estate when you pass away. Reaping the benefits of this arrangement is not simple. It requires knowledge of the law and careful planning.
Let the Estate Planning Attorneys at Viloria, Oliphant, Oster & Aman L.L.P. Help
Addressing senior care is not an easy subject for anyone to face, but it can be critical to preserving wealth for loved ones. The Viloria, Oliphant, Oster & Aman, L.L.P. can help you fully explore your options to take care of yourself while also protecting the financial security of your family. Let us help you. Call us today at (775) 210-8178 to schedule an appointment or contact our office through our website.