Estate Planning and Long-Term Care: How to Afford Skilled Nursing for Seniors

As we age, the need for long-term care becomes more of a what and when than an if. High healthcare costs do not align with an older individual's fixed income, raising concerns about affordability and accessibility. Given a choice, many prefer skilled nursing for seniors.

The right estate planning tools can help alleviate those concerns and prepare you for the long-term care you may need and prefer in your senior years. Based on Central Trust Company's article "The Long-Term Care Quandary: Paying for Skilled Nursing Care," we explore this need, why Medicare and Medicaid are not long-term options, and estate planning to plan for skilled nursing care proactively.

Why Is Affordability a Concern For Most Seniors?

Needing long-term care is a reality for most of the aging population. Individuals 65 or older are 70% more likely to require these services, which has significant financial implications. Fixed income from Social Security, retirement account distributions, or pensions do not typically cover living expenses and healthcare costs.

Skilled nursing for seniors is preferred care, but these facilities' average length of stay and monthly fees highlight affordability concerns for the aging population. Many aging adults face the challenge of bridging the gap between their income and long-term care costs and consider Medicare and Medicaid options.

Why Medicare Is a Not Long-Term Care Solution?

Contrary to popular belief, Medicare's limitations affect long-term care coverage, rendering it a short-term solution. Medicare's hospital insurance coverage is narrow for a fixed number of days. Coverage starts once an individual meets requirements that include daily professional care. Part A covers skilled nursing care under specific conditions; such coverage is limited in duration and scope. Understanding Medicare's limitations highlights the necessity for alternative financial strategies to effectively cover long-term care costs.

Medicaid is a critical safety net for individuals with limited resources. Medicaid eligibility criteria, including income and asset thresholds, determine access to benefits. Consult with an estate planning and elder law attorney to develop a solid Medicaid strategy to preserve assets, navigate the approval process, and potentially supplement your income.

How can Estate Planning Help?

Given high costs, limited income, and few supplemental options, seniors can turn to estate planning and elder law strategies to proactively plan for their long-term care. Estate planning that addresses expenses and assistance program eligibility can build, protect, and preserve the wealth needed to afford skilled nursing care. Working with an experienced estate planning and elder law attorney who can anticipate challenges and provide tools such as irrevocable trusts puts you on a path toward improved financial security and long-term care.

Key Takeaways:

• Look Ahead: Anticipate long-term care needs and create an estate planning strategy.
• Understand Medicaid: Familiarize yourself with Medicaid eligibility.
• Consult a Professional: Seek guidance from an experienced estate planning and elder law attorney to navigate complex estate planning issues.

Conclusion

As long-term care needs increase and costs rise, estate planning strategies to grow and preserve your money become a top priority. A proactive plan can prepare you for this care in a skilled nursing facility with less stress. Contact our team to explore personalized planning solutions tailored to your needs and preferences.

Reference: Central Trust Company (Jan. 26, 2024) "The Long-Term Care Quandary: Paying for Skilled Nursing Care"