As many older adults are unable to take care of themselves how they would like to, living in a senior care facility is an ideal option. However, many do not take the time to look into just how expensive nursing homes are when planning for their older years. As such, many are unaware that spending time in a nursing home can diminish the value of their estate as it puts their assets at risk. The following blog explores what you can do to protect your assets from nursing home costs with the assistance of Pennsylvania estate planning attorneys.
What can I do to protect my assets from nursing home costs?
The first thing you should consider investing in is long-term care coverage. This helps pay for expenses for those in nursing homes and other senior care facilities. While it can be expensive to invest in, it will protect your assets if you move into a nursing home.
Another option some choose to help reduce the impact nursing home costs will have on their estate is to create an irrevocable trust. This essentially transfers the assets out of your name by placing them in a trust under the control of a beneficiary of your choosing. As such, it will reduce your net worth, meaning you may be able to qualify for government assistance to help cover your nursing home expenses.
Finally, you can consider using a life estate transfer. Similar to creating an irrevocable trust, you can decrease the value of your estate to be eligible for Medicaid. The property in the life estate will not be counted toward the value of your estate. This allows you to transfer ownership of the property while keeping the right to reside in the property. Most people transfer to their spouse or children. When you pass away, the person to whom you transferred the property will become the owner.
How can an attorney assist me during these challenging times?
Unfortunately, creating these documents can be extremely challenging as they contain confusing language. As such, you may make an error that invalidates the outcome of your estate plans and puts your assets at risk.
It’s in your best interest to enlist the assistance of an experienced attorney to guide you through these complex legal processes to help shield your assets from nursing home costs.
At Friedman Schuman, we understand that some may not have the ability or family to help care for them in their later years, making nursing homes beneficial facilities. However, we understand that protecting your assets is of the utmost importance to you, and these care homes can jeopardize them. That’s why we’re ready to help you explore your options when planning your estate. Contact us today to learn how our firm can assist you.
