3 Ways You Can Protect Your Assets From Long-Term Care Expenses

The costs of long-term care can be, and often are, significant. If you do not take the time to protect your assets, they could be swept up in the expenses incurred by the long-term care you require.

Going over three ways you can protect your assets from long-term care expenses, and speaking with a Florida long-term care planning lawyer today, will make it easier for you to protect everything you own. 

01: Develop A Medicaid Estate Plan 

You can obtain Medicaid and, in doing so, have it pay for your long-term care. But, this is only possible if you don’t have too many assets. If you have too many assets, then you will not qualify for Medicaid.

Developing a Medicaid estate plan allows you to protect every single one of your assets. On top of that, though, developing a Medicaid estate plan allows you to “reduce” the assets you own, so that you qualify for Medicaid.

If you choose to develop a Medicaid estate plan, you will need to go over the assets you currently own. By doing so, you can figure out what to do with these assets, which may include placing them in a trust. 

02: Set Up An Irrevocable Trust 

If you set up an irrevocable trust, and place your assets into this trust, none of those assets belong to you. But, they remain accessible to you and, in turn, subject to your wishes/intentions.

Just as an example, if you want to give your car and cash to your daughter, you can do so with an irrevocable trust. If you do this, though, you won’t “own” these assets, which may mean that you qualify for Medicaid.

Qualifying for Medicaid, and entering the program, will allow you to have your long-term care expenses taken care of. This is true, even if your assets exceed the Medicaid limits, so long as they are placed in an irrevocable trust. 

03: Purchase Long-Term Care Insurance 

Long-term care insurance is a type of insurance that covers many of the costs incurred by long-term care. By setting up a plan when you are younger, and healthier, you can usually lock in lower premiums and, in turn, save money.

Even though long-term care insurance often covers many of the costs incurred by long-term care, it doesn’t always cover every cost. And, for this reason, it can lead to problems.

If you do want to purchase long-term care insurance, make sure to look at multiple plans. And, make sure to look at the terms for each plan. Some long-term insurance plans may not cover the care you need. 

Speak With A Florida Long-Term Care Planning Lawyer Today 

If you would like to protect your assets from the expenses that long-term care often incurs, obtaining legal help is always a wise choice.

Speak with a Florida long-term care planning lawyer at Millhorn Elder Law Planning Group today and we will help you determine which of the options outlined earlier is right for you. 

Sources: 

medicaid.gov/

law.cornell.edu/wex/irrevocable_trust