When Nancy and her husband, Bob, first came to my office, they were overwhelmed. Bob had recently been diagnosed with early-stage dementia, and Nancy was terrified about what the future held—especially the financial side of things. “I always assumed Medicare would cover long-term care,” she admitted. “I had no idea how much nursing homes cost!”
Nancy’s story is one I hear far too often. Many families assume they will never need Medicaid or can wait until the last minute to plan. The truth is, Medicaid planning is not just about protecting assets—it’s about ensuring you or your loved ones receive the best possible care without losing everything you’ve worked so hard for.
Why Medicaid Planning Matters
Long-term care costs are staggering. In Pennsylvania, the average price of a private room in a nursing home exceeds $120,000 per year. Many families burn through their life savings just a few years before qualifying for Medicaid; however, with the right planning, you don’t have to choose between care and financial security.
Proactive Steps to Take Now
- Understand Medicaid Eligibility: Medicaid has strict financial limits. Without planning, many people exceed these limits and must spend down their assets before qualifying.
- Know the Rules Around Asset Protection: There are legal ways to protect your home, savings, and retirement accounts through strategies such as irrevocable trusts, Medicaid-compliant annuities, and spousal protections.
- Plan with the Five-Year Look-Back Rule: Medicaid penalizes certain asset transfers made within five years of applying. A well-structured plan ensures that you avoid unnecessary penalties.
- Consider the Role of Trusts: An irrevocable trust, if properly structured and funded well in advance, can protect assets from Medicaid’s reach.
Why You Shouldn’t Wait
Nancy and Bob were lucky—they had just enough time to put a Medicaid plan in place. But I’ve seen too many families who wait until a crisis hits, leaving them with limited options. The earlier you start, the more choices you’ll have.
Want to ensure your assets and your family’s future are protected? Register for a workshop today and get the guidance you need before it’s too late.
