One thing is for sure. If you are living, you are getting older. With age comes wisdom, but aging can also impact a person’s level of independence. Many families with loved ones in their golden years are faced with this reality, whether it is a parent, grandparent or any other loved one. As your loved one ages, he or she may need more assistance, and some of the responsibility for their care may be placed upon you. How do you navigate through decisions about insurance, long-term care, home health options, and nursing home planning? Elder law focuses on how to assist families with answering these questions. Elder law includes not only estate planning, but also long-term care planning. It is important to consider the options that may be available so that you and your loved one are at ease about important decisions that must be made during this period of your loved one’s life.
Here are a few tips to consider as you make decisions about your elderly loved one’s finances and healthcare.
- Create an estate plan. Ensure that your loved one has a Will so that you are aware of how they choose to distribute their property upon death. Your loved one also needs a Durable Power of Attorney. A Durable Power of Attorney is crucial in the event that your loved one becomes incapacitated and is no longer able to independently make decisions. Having a POA will allow you to make financial decisions about your loved one’s affairs. You should also ensure that you know your loved one’s wishes regarding their healthcare decisions, which can be captured with an Advanced Healthcare Directive.
- Ask if your loved one has a long-term care insurance policy. Ask your loved one if he or she has a long-term care insurance policy. If not, it is likely that a policy would be cost-prohibitive or your loved one may no longer be insurable based on age or health status.
- Look into government programs for financial support. As you search for assistance with caring for your loved one, do not overlook exploring whether a government program is available to cover the cost of their healthcare. Medicare only pays for skilled nursing care, but only for a short term. Aid and attendance benefits from the Veterans Administration are also available for wartime veterans and their spouses who qualify. Medicaid is a surprising source that pays for in-home care (through waiver programs) and nursing home care for your loved one. However, Medicaid has asset and income limitations. Your loved one may be concerned that he/she will lose the home or family land in order to qualify for Medicaid. However, with careful planning, an elder law attorney can help you legally and strategically shelter assets so that your loved one can qualify for Medicaid and preserve their life savings from being depleted by the cost of long-term care.
- Private Pay. Your loved one can privately pay for their long-term care, but this can get costly. On average, in-home assistance by a home health aide can average about $48,000 per year. That does not include skilled nursing services if your loved one needs an advanced level of care. The estimated cost of nursing home care is about $7,500 or more per month or $90,000 or more annually.
Contact our office at legal@walkerlegalconsulting.com or 662-664-5503 to discuss whether an asset protection plan is the right choice for you or your loved one.
