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Practice Areas

Medicaid Planning & Nursing Home Planning

Pre-Crisis Medicaid Planning

Crisis Medicaid Planning

Long-term care can include any service that helps people who have a prolonged illness. The illness can be a physical disability or a cognitive impairment such as Alzheimer’s disease or Dementia.  The services may include help with activities of daily living, home health care, adult day care, hospice care, nursing home care, or care in an assisted living facility.  The level of assistance required can include physical therapy, administration of medication, and help with daily activities such as bathing, eating, and dressing.

Contrary to what many people believe, Medicare coverage will not pay for most of the long-term care they will need if they suffer from a long-term illness. According to the U.S. Department of Health and Human Services, the average costs in the U.S. (in 2009) are:

Here, in the Cary, North Carolina area, that could mean paying more than $70,000 per year to a nursing home.

It’s easy to fall into the trap of thinking that because you are healthy now, you don’t need to worry about long-term care, but consider this:

The costs of long term care can be financially devastating to families.  So how do most people afford such long-term care?  Through a combination of long term care insurance, paying out of pocket, and Medicaid. 

What is Medicaid?

Medicaid is a federal program that provides health coverage for people with limited assets and income. It covers the cost of nursing home care for those who meet the program's eligibility requirements. Although it is a federal program, Medicaid is administered by the states. This means that application of these rules can vary significantly from state to state and sometimes even from county to county.

People who have excess assets and income often wish to start the process of protecting their assets so that if and when the time comes that they require nursing home care, they will be eligible to receive Medicaid benefits. Medicaid planning can also be done even if your loved one is already in or is about to enter a skilled nursing facility. However, the earlier you begin your planning, the more options you will have to protect your assets and your loved ones.

While North Carolina Medicaid law can be complex, it’s important to understand this:  Medicaid is there to help families like yours, and Medicaid planning is a great way to insure that if needed, you can qualify as quickly as possible, to protect your family from the financial strain of nursing home care. 

First, it’s important to understand that there are two kinds of Medicaid Planning that families face: Medicaid Pre-Planning and  Medicaid Crisis Planning.

Pre-Crisis Medicaid Planning

Pre-Crisis Medicaid Planning is for individuals or married couples who are currently healthy, but want to put together a plan to protect against the very real possibility, that someday one or both may become incapacitated and require long-term care.  They want to ensure that they won’t have to deplete their savings or assets and ensure that their spouse and family will be protected from financial devastation.

As you read above, the reality is that although you’re healthy now, statistically, there is a high probability that one or both of you will need assisted living or a nursing home in the future…and that expense.     

Unfortunately, skilled nursing care is expensive, and it just keeps cost more and more each year.  Nursing home care typically costs $6,000 per month or more (that’s $72,000 per year!)!) in the Cary, North Carolina area.  Typically, the only source of funds to pay for such expenses comes from the hard-earned life savings of the individual or couple.  Given the high burn rate of over $72,000 per year or greater, that can quickly deplete your hard-earned savings—savings that you probably need and intended to be there for your spouse and family to be cared for and provided for with.  Instead, those funds could wind up being spent down for your care. 

What many don’t realize is that we can help you today by developing a comprehensive asset protection plan.  These plans contemplate the possibility of a long-term nursing home stay and are designed to help you get qualified for Medicaid as quickly as possible, all while protecting as much of your assets as legally possible.

The documents that many traditional estate planning lawyers use tend to focus on after-death planning, with little thought or attention paid to how your affairs should be managed in the event of a disability.  Unlike those traditional estate planning lawyers, we’ll work with you to create  a holistic plan that also provides detailed instructions regarding a potential disability and considers the best way to structure your assets for maximum protection.

The ultimate goal of Pre-Crisis Medicaid Planning is to give you peace of mind.  You teach us about your family, goals and concerns.  We’ll teach you about the law.  Together we’ll create a plan that will work when you need it, so you can sleep soundly at night knowing that you and your family are protected if the unthinkable should occur.

We can help you protect and preserve your hard-earned assets for your loved ones.   Call us at (919) 443-3035 to schedule a Peace of Mind Planning Session today!

Crisis Medicaid Planning

Crisis Medicaid Planning involves an individual who has either already been admitted to a nursing home facility or is about to be placed in a nursing home and they have been told, or they assume, that they have too much money or too many assets to qualify for Medicaid assistance.  This may be a single individual, one half of a married couple, or both halves of a married couple.

If this is your or a loved one, your family could be facing nursing home costs of $6,000 per month or greater (that’s $72,000 per year!)!) in the Cary, North Carolina area.  Typically, the only source of funds to pay for such expenses comes from the hard-earned life savings of the individual or couple.  Given the high spending rate of over $72,000 per year (which can be even magnified if we still have a healthy spouse at home with living expenses, it doesn’t take long to go broke. 

The government will not step in and help pay for your nursing home stay until you’ve met the financial test for Medicaid.   Yet many people receive flat-out WRONG advice about how to qualify for Medicaid, often from well-intentioned family and friends.  Following that advice can often have major negative consequences.  For example, if you give everything to your children, you will actually delay how quickly you qualify for Medicaid, not speed it up.

Unless you work in this area, you’re likely not aware of the many ways to legally preserve the maximum amount of assets and income and still qualify for Medicaid benefits in the shortest among of time possible, whether you’re an individual or a married couple.   And while pre-planning often leaves you with more options, even in a crisis scenario there are generally several planning options still available.

This is your life savings.  The things you’ve worked hard for over your lifetime.  You owe it to yourself, your spouse and your family to do what you can to protect them.  You don’t have to go broke or lose your home to qualify for Medicaid. 

Call us to schedule a confidential, no-cost consultation to discuss your concerns.  We’ll be able to tell you in the first meeting if we can help and what we’ll be able to help protect and save for you and your family.

Remember, it’s never too late. We can help you protect and preserve your hard-earned assets for your loved ones.   Call us at (919) 443-3035 to schedule a Peace of Mind Planning Session today!