When you are looking ahead toward your retirement years, you probably envision the good times that lie in wait. If you take the right steps along the way, you will have the resources to relax, enjoy leisure activities, and cross things off your bucket list. Without question, your golden years can be quite fruitful.
A lot of people that understand the importance of retirement planning do not look over the horizon. The twilight years will inevitably follow these golden years, and there is an unpleasant reality that you should fully recognize so that you can prepare for it properly.
The United States Department of Health and Human Services maintains a very useful and informative website called LongTermCare.gov. On the site, they state that seven out of every 10 people that are turning 65 on any given day will eventually need help with their activities of daily living.
In many instances, the level of assistance that is needed can be provided by family members and friends. However, at some point, a higher level of care may be required.
Assisted living facilities, nursing homes, and in-home care providers are very expensive. In 2019, the median annual cost for a home health aide was right around $60,000 in our area. You would be looking at about $150,000 for year in a private room in a nursing home.
If you are thinking that you are not too concerned because you will qualify for Medicare, we have some bad news to pass along. Medicare does not pay for any type of custodial care, so you have to make other arrangements.
The solution for most people is Medicaid. This jointly administered federal/state government health insurance program does pay for custodial care. Since it is a need-based program, there are very low income and asset limits.
To qualify for Medicaid to pay for long-term care, people typically give gifts to their loved ones. However, this takes careful and informed planning, because there is a five-year look back period. All gift giving must be completed at least five years before you apply for Medicaid coverage.
Attend a Webinar
Our attorneys go the extra mile to provide educational opportunities to our neighbors. Before the pandemic, we held seminars on an ongoing basis, but gatherings are not feasible at the present time.
As a response, we are utilizing technology to bring the same great information to you in a safe manner. We are now offering webinars, and there are a number of them coming up in the near future. You can visit our webinar page to see the dates and obtain registration details.
Schedule a Remote Consultation!
If you are going through life without any type of plan for the future, now is the time to take control. We would be more than glad to gain an understanding of your situation, discuss your options with you, and help you put a plan in place if you decide to move forward.
Once again, we have adjusted our business model to intelligently react to the pandemic. We are meeting with our clients through video and teleconferencing, so you can connect with us without taking any risks.
To schedule an appointment with an attorney from our office in Essex Junction, give us a call at 802-879-7133. There is also a contact form on this website that you can use to send us a message.